ARLINGTON, Texas - Forestar Group Inc . (NYSE: FOR ), a leading national residential lot developer, saw its shares plunge over 7% on Tuesday.
This was after reporting first-quarter fiscal 2025 results that fell well short of analyst expectations and provided weak guidance.
The company reported earnings per share of $0.32 for the quarter ended December 31, 2024, missing the analyst consensus estimate of $0.70 by $0.38.
Revenue came in at $250.4 million, significantly below the $325.4 million analysts were expecting and down 18.1% YoY from $305.9 million.
Forestar sold 2,333 lots during the quarter, a 26% decrease from 3,150 lots in the same period last year. The company's net income dropped 57% to $16.5 million compared to $38.2 million in Q1 fiscal 2024.
Despite the weak results, Forestar maintained its fiscal 2025 outlook, expecting to deliver between 16,000 and 16,500 lots and generate revenue of $1.6 billion to $1.65 billion.
The company also plans to invest approximately $2.0 billion in land acquisition and development this fiscal year.
"In the first quarter, the Forestar team continued the expansion of our operating platform by making significant investments in land acquisition and development, adding key personnel in our local markets and entering new markets," said Donald J. Tomnitz, Chairman of the Board.
The company ended the quarter with $132.0 million in unrestricted cash and total liquidity of $644.5 million. Forestar's net debt to total capital ratio stood at 29.5% as of December 31, 2024.
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