Forestar Group misses Q2 estimates, cuts guidance, shares fall nearly 3%

Published 17/04/2025, 12:30
Forestar Group misses Q2 estimates, cuts guidance, shares fall nearly 3%

ARLINGTON, Texas - Forestar Group Inc . (NYSE:FOR), a leading national residential lot developer, reported second quarter earnings that fell short of analyst expectations and reduced its full-year outlook on Thursday.

Shares of Forestar were down -2.84% in premarket trading following the earnings release and reduced guidance.

The company posted earnings per share of $0.62 for the quarter ended March 31, missing the consensus estimate of $0.67. Revenue came in at $351 million, below analyst projections of $386.14 million but up 5% year-over-year.

Forestar lowered its fiscal 2025 revenue guidance to $1.5-1.55 billion, down from its previous forecast of $1.6-1.65 billion and below the $1.647 billion analysts were expecting. The company now anticipates delivering 15,000-15,500 lots this fiscal year, reduced from its prior outlook of 16,000-16,500 lots.

"Home affordability constraints and declining consumer confidence continue to impact the pace of new home sales, resulting in a slower than expected start to the spring selling season," said Donald J. Tomnitz, Chairman of the Board.

Despite the challenges, Forestar reported a 4% increase in lots sold to 3,411 during the quarter. The company’s lot position stood at 105,900 at quarter-end, with 68,400 owned and 37,500 controlled through contracts.

Forestar ended the quarter with $174.3 million in cash and $617.7 million available on its credit facility. In March, the company issued $500 million in new senior notes and used part of the proceeds to repurchase $329.4 million of existing notes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.