Forestar Group Posts $407 Million Q2 Revenue, Misses Estimates as Real Estate Services Stocks Slide

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Summary · why it matters

Forestar Group reported second-quarter revenues of $407 million, up 4.2% year on year but 7.7% below analysts' expectations, in a softer quarter that also saw a significant miss on EPS estimates and full-year revenue guidance slightly below consensus. Chairman of the Board Donald J. Tomnitz said the Forestar team delivered solid third quarter results, including a 4% increase in revenues to $407.0 million and a 12% increase in pre-tax income to $48.7 million, with liquidity rising to $1.1 billion. Among the 13 consumer discretionary real estate services stocks tracked, revenues as a group beat consensus by 11.5% while next-quarter revenue guidance came in 4.4% below, and share prices have fallen 14.3% on average since the latest results. Howard Hughes Holdings posted the group's best quarter with revenues of $1.12 billion, up 330% year on year and 139% above expectations, while Offerpad was the slowest, with revenues of $77.65 million, down 51.6% year on year and 8.9% short of estimates. Forestar Group delivered the weakest full-year guidance update among its peers, and its stock is down 8.1% since reporting, trading at $25.93.

Impact on assets 6

Real Estate± Mixed
Forestar Group Inc
FOR
▼ NegativeCapitalrelevance

Forestar missed Q2 revenue and EPS estimates and delivered the weakest full-year guidance among peers, with its stock down 8.1% since reporting.

Howard Hughes Holdings Inc.
HHH
▲ PositiveCapitalrelevance

Howard Hughes posted the group's best quarter with revenues of $1.12 billion, up 330% year on year and 139% above expectations.

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