Forestar Drops On Earnings Miss, Reduced Outlook

(RTTNews) - Shares of residential lot development company Forestar Group Inc. (FOR) are down more than 12% Wednesday morning after reporting lower-than-expected earnings in the third quarter. The company also reduced its full-year outlook.

Net income in the third quarter increased 151% to $39.7 million or $0.80 per diluted share from $15.8 million, or $0.32 per diluted share, in the same quarter a year ago, however, missed the average estimate of analysts polled by Thomson Reuters of $0.81 per share.

Revenues for the quarter decreased 1% to $308.5 million from $312.9 million last year.

Looking forward, Donald J. Tomnitz, Chairman of the Board, said, "we expect to deliver approximately 17,000 lots generating approximately $1.425 billion of revenue in fiscal 2022, compared to our prior guidance of between 19,500 and 20,000 lots generating approximately $1.7 billion of revenue."

FOR, currently at $13.81, has been trading in the range of $13.06-$22.60 in the past 1 year.