Forestar Group (NYSE:FOR) Posts Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Forestar Group (NYSE:FOR) issued its quarterly 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. Forestar Group had a return on equity of 9.42% and a net margin of 9.88%. The firm had revenue of $580.80 million for the quarter, compared to analyst estimates of $603.10 million. During the same period in the prior year, the firm posted $1.70 EPS. The business’s revenue was down 13.4% compared to the same quarter last year.

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 Performance

Forestar Group stock traded down $1.03 during mid-day trading on Thursday, hitting $24.89. The company had a trading volume of 345,588 shares, compared to its average volume of 153,351. The company has a market capitalization of $1.27 billion, a price-to-earnings ratio of 7.48 and a beta of 1.40. Forestar Group has a 12-month low of $22.81 and a 12-month high of $32.06. The company’s fifty day moving average is $26.67 and its 200-day moving average is $27.45. The company has a current ratio of 1.44, a quick ratio of 1.44 and a debt-to-equity ratio of 0.43.

Forestar Group News Roundup

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

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the company. Citizens Jmp reissued a “market outperform” rating and issued a $35.00 price objective on shares of Forestar Group in a report on Wednesday, July 22nd. Weiss Ratings cut Forestar Group from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, October 23rd. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $32.67.

About Forestar Group

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.