Shares of Forestar Group Inc. (FOR) are surging 5.34% in pre-market trading on Tuesday following the release of its fiscal 2025 third-quarter results. The national residential lot developer reported a significant 23% increase in revenue, reaching $390.5 million, slightly beating analyst expectations of $384.7 million.
Despite the robust revenue growth, Forestar's earnings per share (EPS) came in at $0.65, down from $0.76 in the same quarter last year and below the FactSet consensus estimate of $0.68. The company attributed this performance to a challenging macro environment, which was partially offset by strong lot sales. Forestar reported an 11% increase in residential lots sold, totaling 3,605 for the quarter.
Looking ahead, Forestar updated its fiscal 2025 lot delivery guidance to 14,500-15,000 lots, slightly lower than the previous guidance of 15,000-15,500 lots. However, the company maintained its revenue guidance for the fiscal year at $1.50 billion to $1.55 billion, in line with analyst expectations. This outlook, coupled with the company's strong balance sheet and substantial operating platform, appears to have boosted investor confidence. Forestar also highlighted its $2.3 billion in contracted future revenue, underscoring its solid market position and growth potential.
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