Forestar Group reports Q3 EPS 65c, consensus 76c

Reports Q3 revenue $390.5M, consensus $392M. Donald Tomnitz, Chairman of the Board, said, “The Forestar team delivered increased lot deliveries and revenues compared to the prior year quarter and maintained strong liquidity through disciplined investment in inventory despite affordability constraints and weaker consumer confidence continuing to impact the pace of new home sales. Based on our fiscal year-to-date results and current market conditions, we are updating our lot delivery guidance for FY25. We now expect to deliver between 14,500 and 15,000 lots compared to our prior guidance of between 15,000 and 15,500 lots. We are maintaining our previous revenue guidance of $1.50B-$1.55B. Forestar is uniquely positioned to consistently supply finished lots that are essential to the homebuilding industry. Our strong balance sheet and liquidity give us the flexibility to operate effectively through changing market conditions. We expect to continue aggregating significant market share, supported by our substantial operating platform, strategic relationship with D.R. Horton and $2.3B of contracted future revenue. We will maintain our disciplined approach to capital allocation while positioning Forestar for growth and driving long-term value for our shareholders.”