Forestar Group (NYSE:FOR) Releases Quarterly Earnings Results, Misses Expectations By $0.11 EPS

Forestar Group (NYSE:FOR) released its earnings results on Tuesday. The oil and gas exploration company reported $0.70 EPS for the quarter, missing the consensus estimate of $0.81 by ($0.11), RTT News reports. The company had revenue of $407.00 million for the quarter, compared to analyst estimates of $437.73 million. Forestar Group had a net margin of 9.88% and a return on equity of 9.42%. Forestar Group’s revenue for the quarter was up 4.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.65 earnings per share.

Here are the key takeaways from Forestar Group’s conference call:

• Forestar posted a solid third quarter, with revenue up 4% to $407 million, EPS up 8% to $0.70, and pre-tax income up 12% to $48.7 million.
• The company said its backlog remains strong at about $2.3 billion of expected future revenue, supported by $202 million of hard earnest money deposits and 23,500 owned lots under contract to sell.
• Management maintained fiscal 2026 guidance for 14,000-14,500 lot deliveries and $1.6 billion-$1.7 billion of revenue, signaling confidence despite a softer housing backdrop.
• Forestar ended the quarter with approximately $1.1 billion of liquidity, no senior note maturities in the next 12 months, and a modest 17.7% net debt-to-capital ratio, reinforcing balance-sheet strength.
• Executives said home affordability and cautious consumer sentiment continue to pressure new-home demand, while lot market conditions remain stable with pricing largely unchanged and only limited relief in development terms and cycle times.

Forestar Group Stock Performance

FOR opened at $27.39 on Thursday. Forestar Group has a 52-week low of $22.81 and a 52-week high of $32.06. The firm has a market capitalization of $1.40 billion, a PE ratio of 8.23 and a beta of 1.39. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.36 and a current ratio of 1.44. The business’s 50-day simple moving average is $28.75 and its 200 day simple moving average is $27.46.

Institutional Trading of Forestar Group

A number of hedge funds have recently made changes to their positions in FOR. Caitong International Asset Management Co. Ltd raised its stake in Forestar Group by 1,206.6% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 993 shares of the oil and gas exploration company’s stock valued at $26,000 after acquiring an additional 917 shares during the period. Kestra Advisory Services LLC acquired a new position in shares of Forestar Group in the fourth quarter valued at $27,000. Comerica Bank increased its holdings in shares of Forestar Group by 76.5% in the third quarter. Comerica Bank now owns 1,269 shares of the oil and gas exploration company’s stock valued at $34,000 after purchasing an additional 550 shares during the last quarter. Tower Research Capital LLC TRC raised its position in shares of Forestar Group by 201.1% in the second quarter. Tower Research Capital LLC TRC now owns 2,105 shares of the oil and gas exploration company’s stock valued at $42,000 after purchasing an additional 1,406 shares during the period. Finally, State of Wyoming bought a new position in shares of Forestar Group in the fourth quarter valued at about $66,000. 35.50% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

FOR has been the subject of a number of recent research reports. Weiss Ratings raised Forestar Group from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, July 15th. Citizens Jmp reissued a “market outperform” rating and set a $35.00 price objective on shares of Forestar Group in a report on Wednesday. BTIG Research began coverage on Forestar Group in a research note on Monday, March 30th. They issued a “hold” rating on the stock. Finally, Zacks Research lowered shares of Forestar Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 30th. Two analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Forestar Group currently has an average rating of “Hold” and an average target price of $32.67.

Forestar Group Company Profile

Forestar Group Inc, headquartered in Austin, Texas, is a residential lot development and management company focused on delivering finished home sites to homebuilders across the United States. The company acquires, entitles and develops land for single-family and multi-family housing, managing zoning, infrastructure and environmental approvals to prepare lots for construction. Forestar’s integrated approach to land development spans from initial site acquisition through final lot delivery, providing homebuilders with ready-to-build parcels in a variety of markets.

In addition to lot development, Forestar operates a retail homebuilding segment through joint ventures and strategic partnerships with national and regional homebuilders.