Forestar Group (NYSE:FOR – Get Free Report) announced its quarterly earnings data on Thursday. The oil and gas exploration company reported $1.15 earnings per share (EPS) for the quarter, missing the consensus estimate 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 business had revenue of $580.80 million during the quarter, compared to analyst estimates of $603.10 million. During the same period in the prior year, the firm earned $1.70 EPS. The business’s revenue for the quarter was down 13.4% on a year-over-year basis.
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 Price Performance
Shares of FOR traded down $1.04 during mid-day trading on Friday, reaching $23.99. The company had a trading volume of 116,695 shares, compared to its average volume of 153,052. The company has a market capitalization of $1.22 billion, a P/E ratio of 7.21 and a beta of 1.40. The company’s 50-day moving average is $26.58 and its 200-day moving average is $27.44. Forestar Group has a twelve month low of $22.81 and a twelve month high of $32.06. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.44 and a quick ratio of 1.44.
Key Headlines Impacting Forestar Group
Here are the key news stories impacting Forestar Group this week:
- Neutral Sentiment: Forestar announced a leadership transition and board refresh. Executive Chairman Donald J. Tomnitz will retire effective October 31, 2026, and President and CEO Anthony W. Oxley will become executive chairman and CEO on November 1. The changes provide management continuity but add a governance transition for investors to monitor. Forestar leadership transition announcement
- Negative Sentiment: Forestar reported fourth-quarter earnings per share of $1.15, below the $1.25 analyst consensus and down from $1.70 in the prior-year quarter. Revenue fell 13.4% year over year to $580.8 million, missing the $603.1 million estimate. Forestar fourth-quarter earnings results
- Negative Sentiment: The earnings decline was attributed in part to a drop in tract sales, which pulled results below expectations and likely reinforced concerns about demand, sales timing and near-term earnings momentum. Forestar fourth-quarter tract sales report
Wall Street Analysts Forecast Growth
Several equities research analysts recently commented on FOR shares. Weiss Ratings downgraded shares of Forestar Group from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, October 23rd. Citizens Jmp reissued a “market outperform” rating and set a $35.00 price objective on shares of Forestar Group in a report on Wednesday, July 22nd. Two research 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 stock presently has a consensus rating of “Hold” and an average price target of $32.67.
Read Our Latest Stock Report on FOR
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.
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