Forestar Group (NYSE:FOR) Releases Earnings Results, Misses Expectations By $0.10 EPS

Forestar Group (NYSE:FOR) issued its earnings results on Thursday. The oil and gas exploration company reported $1.15 earnings per share for the quarter, missing the consensus estimate of $1.25 by ($0.10), Zacks reports. The firm had revenue of $580.80 million during the quarter, compared to analyst estimates of $603.10 million. Forestar Group had a net margin of 8.72% and a return on equity of 7.73%. The firm’s revenue was down 13.4% compared to the same quarter last year. During the same period last year, the business earned $1.70 EPS.

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 4.7%

Forestar Group stock traded down $1.18 during midday trading on Friday, hitting $23.85. The stock had a trading volume of 348,715 shares, compared to its average volume of 174,321. Forestar Group has a 12 month low of $22.81 and a 12 month high of $32.06. The company has a current ratio of 2.22, a quick ratio of 1.44 and a debt-to-equity ratio of 0.41. The stock has a market cap of $1.22 billion, a P/E ratio of 8.58 and a beta of 1.40. The business has a fifty day moving average price of $26.48 and a 200 day moving average price of $27.42.

Forestar Group News Summary

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

• Neutral Sentiment: Forestar announced that long-serving Executive Chairman Donald J. Tomnitz will retire effective October 31, 2026. President and CEO Anthony W. Oxley will become executive chairman and chief executive officer on November 1, providing leadership continuity but ending Tomnitz’s nearly nine-year tenure. The company also announced related board changes. Forestar leadership transition announcement
• Negative Sentiment: Fiscal fourth-quarter earnings were below expectations: adjusted earnings per share of $1.15 missed the $1.25 consensus estimate. EPS also declined from $1.70 in the year-earlier quarter, highlighting weaker profitability. Forestar fourth-quarter income report
• Negative Sentiment: Revenue of $580.8 million fell short of the $603.1 million analyst forecast and decreased 13.4% year over year. Reports also pointed to a decline in tract sales, suggesting softer demand or reduced community-development activity and weighing on the near-term outlook. Forestar fourth-quarter tract sales report

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Weiss Ratings cut 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 issued a $35.00 target price on shares of Forestar Group in a research note on Wednesday, July 22nd. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, Forestar Group presently has a consensus 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.