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

Forestar Group (NYSE:FOR) issued its quarterly earnings data on Tuesday. The oil and gas exploration company reported $0.70 EPS for the quarter, missing analysts’ consensus estimates of $0.81 by ($0.11), RTT News reports. Forestar Group had a return on equity of 9.49% and a net margin of 9.80%.The company had revenue of $407.00 million for the quarter, compared to analyst estimates of $437.73 million. During the same quarter in the previous year, the business 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 Trading Down 4.3%

Shares of NYSE:FOR opened at $26.98 on Wednesday. The company’s 50-day moving average price is $28.73 and its two-hundred day moving average price is $27.44. Forestar Group has a one year low of $22.50 and a one year high of $32.06. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.36 and a quick ratio of 1.36. The stock has a market capitalization of $1.38 billion, a PE ratio of 8.22 and a beta of 1.39.

Institutional Trading of Forestar Group

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. First Trust Advisors LP increased its position in shares of Forestar Group by 0.6% during the 2nd quarter. First Trust Advisors LP now owns 160,204 shares of the oil and gas exploration company’s stock worth $3,204,000 after purchasing an additional 952 shares during the last quarter. BNP Paribas Financial Markets boosted its holdings in shares of Forestar Group by 3.5% in the 3rd quarter. BNP Paribas Financial Markets now owns 79,429 shares of the oil and gas exploration company’s stock valued at $2,112,000 after buying an additional 2,699 shares during the last quarter. Mackenzie Financial Corp bought a new position in shares of Forestar Group in the third quarter valued at $1,555,000. Jump Financial LLC grew its stake in shares of Forestar Group by 138.6% in the second quarter. Jump Financial LLC now owns 62,200 shares of the oil and gas exploration company’s stock valued at $1,244,000 after buying an additional 36,129 shares in the last quarter. Finally, Jane Street Group LLC acquired a new position in Forestar Group during the fourth quarter worth $1,105,000. Institutional investors and hedge funds own 35.50% of the company’s stock.

Key Stories Impacting Forestar Group

Here are the key news stories impacting Forestar Group this week:

• Neutral Sentiment: Forestar reiterated FY2026 guidance for 14,000-14,500 lots and revenue of $1.6 billion-$1.7 billion, signaling management is holding its full-year outlook despite a tougher operating backdrop. Article: Forestar maintains FY2026 guidance for 14,000-14,500 lots and $1.6B-$1.7B revenue amid affordability headwinds
• Neutral Sentiment: On the earnings call, investors likely focused on management commentary around affordability headwinds and the pace of lot sales, which can affect near-term sentiment. Article: Forestar Group Inc. (FOR) Q3 2026 Earnings Call Transcript
• Negative Sentiment: Forestar reported quarterly EPS of $0.70, missing the $0.85 consensus estimate, and revenue of $407.0 million versus expectations of $437.73 million, a miss that likely weighed on the stock. Article: Forestar Group earnings report and conference call links
• Negative Sentiment: Coverage also highlighted that Forestar missed Q2 CY2026 sales expectations and that shares slipped after the third-quarter earnings and revenue miss, reinforcing the market’s negative reaction. Article: Forestar Group (NYSE:FOR) Misses Q2 CY2026 Sales Expectations

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on FOR shares. BTIG Research assumed coverage on shares of Forestar Group in a research note on Monday, March 30th. They issued a “hold” rating for the company. Weiss Ratings raised Forestar Group from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, July 15th. Finally, Zacks Research lowered Forestar Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 30th. Two analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target 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.