Forestar Group (NYSE:FOR) Issues Quarterly Earnings Results

Key Points

• Forestar missed quarterly expectations: EPS was $1.15 versus the $1.25 consensus, while revenue of $580.8 million fell 13.4% year over year and came in below the $603.1 million estimate.
• Fiscal 2026 revenue reached $1.6 billion and net income totaled $142.6 million, supported by $1.3 billion in liquidity and a low 6.7% net debt-to-total-capital ratio.
• Housing-market pressures remain a concern: Higher mortgage rates and cautious buyers are weighing on lot demand, with fiscal 2027 guidance calling for lower revenue of $1.4–$1.5 billion and 12,000–13,000 lot deliveries; shares fell 4% following the report.

Forestar Group (NYSE:FOR - Get Free Report) announced its earnings results on Thursday. The oil and gas exploration company reported $1.15 EPS for the quarter, missing analysts' consensus estimates of $1.25 by ($0.10), Zacks reports. The firm had revenue of $580.80 million during the quarter, compared to the consensus estimate of $603.10 million. Forestar Group had a return on equity of 9.42% and a net margin of 9.88%. The business's revenue for the quarter was down 13.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.70 earnings per share.

Here are the key takeaways from Forestar Group's conference call:

• Forestar reported fiscal 2026 revenue of $1.6 billion and net income of $142.6 million, while book value per share increased 8% to $37.56.
• The company ended the year with $1.3 billion of liquidity, including $657 million of unrestricted cash, and modest leverage with a 6.7% net debt-to-total-capital ratio.
• Affordability constraints, cautious buyers and higher mortgage rates continued to pressure new-home demand and the timing of builders’ lot purchases. Fiscal 2027 guidance calls for 12,000–13,000 lot deliveries and $1.4–$1.5 billion of revenue, below fiscal 2026 levels.
• Fourth-quarter gross margin declined to 17.8% from 22.3% a year earlier, primarily due to $7.6 million of impairments and additional regulatory-related project closeout costs; excluding these items, margin was 20.8%.
• Forestar plans to invest approximately $1.3 billion in land acquisition and development during fiscal 2027, emphasizing smaller, faster-turning projects and opportunities to expand its share of D.R. Horton’s business amid potentially increasing distressed opportunities.

Forestar Group Stock Down 4.0%

Shares of FOR traded down $1.03 during mid-day trading on Thursday, hitting $24.89. 345,588 shares of the company traded hands, compared to its average volume of 153,351. The company has a market capitalization of $1.27 billion, a PE ratio of 7.48 and a beta of 1.40. The company has a quick ratio of 1.44, a current ratio of 1.44 and a debt-to-equity ratio of 0.43. The business has a 50 day moving average of $26.67 and a 200 day moving average of $27.45. Forestar Group has a 1-year low of $22.81 and a 1-year high of $32.06.

More Forestar Group News

Here are the key news stories impacting Forestar Group this week:

• Positive Sentiment: Forestar remained profitable, reporting a 9.88% net margin and 9.42% return on equity for the quarter. Forestar Group fourth-quarter earnings results
• Neutral Sentiment: Forestar announced a leadership transition: long-serving Executive Chairman Donald J. Tomnitz will retire effective October 31, while President and CEO Anthony W. Oxley will also become executive chairman on November 1. The change could provide continuity because Oxley already leads the company, though investors will watch for any strategic shifts. Forestar leadership transition announcement
• Negative Sentiment: Fourth-quarter earnings were $1.15 per share, below the $1.25 analyst consensus. Revenue of $580.8 million also missed the $603.1 million estimate, signaling weaker-than-expected operating performance. Forestar Group fourth-quarter income report
• Negative Sentiment: Revenue declined 13.4% from the same quarter a year earlier, while EPS fell from $1.70 to $1.15. The combination of shrinking sales and lower profitability is weighing on the stock and raises concerns about near-term demand and land-development activity. Forestar earnings and sales report

Wall Street Analyst Weigh In

FOR has been the topic of a number of recent analyst reports. Weiss Ratings cut shares of Forestar Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, October 23rd. Citizens Jmp reissued a "market outperform" rating and set a $35.00 target price on shares of Forestar Group in a research report on Wednesday, July 22nd. Two investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $32.67.

Forestar Group Company Profile

Forestar Group Inc NYSE: FOR is a residential lot development company that acquires, entitles and develops land for housing construction. The company sells finished and partially developed residential lots to homebuilders, including its majority shareholder, D.R. Horton, as well as other national, regional and local builders.

Forestar's activities generally include identifying land opportunities, obtaining development approvals, installing infrastructure and managing the construction of roads, utilities and other improvements needed for residential communities.

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