Overview

* Forestar ( FOR ) fiscal Q3 revenue rises 23% yr/yr to $390.5 mln, missing estimates

* Net income for fiscal Q3 falls 15% yr/yr to $32.9 mln

* Co lowers fiscal 2025 lot delivery guidance due to weak market conditions

Outlook

* Forestar ( FOR ) updates fiscal 2025 lot delivery guidance to 14,500-15,000 from priorguidanceof between 15,000 and 15,500

* Company maintains fiscal 2025 revenue guidance of $1.50 bln to $1.55 bln

* Forestar ( FOR ) cites affordability constraints impacting new home sales pace

* Company expects $2.3 bln of contracted future revenue

Result Drivers

* LOTS SOLD - Residential lots sold increased 11% to 3,605 lots, contributing to revenue growth

* CONTRACTED LOTS - Lots contracted for sale rose 26% to 25,700, indicating strong future revenue potential

* D.R. HORTON RELATIONSHIP - Strategic relationship with D.R. Horton supports significant market share aggregation

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $390.50 $390.60

Revenue mln mln (5

Analysts

)

Q3 EPS $0.65

Q3 Net $32.90

Income mln

Q3 Basic $0.65

EPS

Q3 $43.60

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the construction & engineering peer group is "hold."

* Wall Street's median 12-month price target for Forestar Group Inc ( FOR ) is $28.50, about 22.5% above its July 21 closing price of $22.08

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)