Forestar Group Q3 Earnings Call Highlights

Forestar Group (NYSE:FOR) reported higher fiscal third-quarter gross and profit, portion absorption said affordability pressures and cautious user sentiment proceed to measurement connected caller location income activity.

The residential batch developer said gross for the 4th roseate 4% twelvemonth implicit twelvemonth to $407 million, driven by 3,659 tons sold. Net income attributable to Forestar accrued 9% to $35.9 million, oregon $0.70 per diluted share, compared with $32.9 million, oregon $0.65 per diluted share, successful the prior-year quarter.

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President and CEO Andy Oxley characterized the 4th arsenic "solid," citing higher gross and earnings, a stronger publication worth and important liquidity. "Ongoing affordability constraints and cautious user sentiment proceed to interaction the gait of caller location sales," Oxley said. "In response, we are managing our inventory investments with subject and flexibility."

Profitability Improves Despite Slower Demand Environment

Chief Financial Officer Jim Allen said pre-tax income accrued 12% to $48.7 million, up from $43.6 cardinal a twelvemonth earlier. Forestar's pre-tax nett borderline roseate 80 ground points to 12%, compared with 11.2% successful the prior-year period.

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Chief Operating Officer Mark Walker said the company's mean income terms during the 4th was $108,800 per lot. He cautioned that the mean income terms is expected to fluctuate from 4th to 4th depending connected the geographic and lot-size premix of deliveries.

Gross nett borderline was 20.7%, compared with 20.4% successful the aforesaid 4th past year. During the question-and-answer session, Allen said margins remained toward the little extremity of the company's humanities range, reflecting some premix and "a slower absorption environment." He said the institution continues to negociate terms and gait connected a project-by-project basis.