Forestar Group (FOR +1.65%) wasn't exactly a stock market star on Tuesday, but it benefited from a burst of investor optimism. Following the release of the real estate developer's latest quarterly earnings report that morning, investors piled into the stock to push it to a more than 7% gain on the day. That compared rather well to the 0.2% bump of the S&P 500 (^GSPC +1.46%).
Landing well in the black
Forestar took the wraps off its fiscal fourth quarter of 2025 numbers, divulging that revenue leaped by almost 22% year over year to over $670 million. Headline net income, i.e., according to generally accepted accounting principles (GAAP), advanced at a 7% clip to $87 million, or $1.70 per share.
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This meant crushing beats on the average analyst projections. The consensus was less than $557 million for revenue, and only $1.26 per share on the bottom line.
Forestar, which specializes in transacting parcels of land and does brisk business with top home construction company DR Horton, enjoyed financial gains despite a 9% year-over-year drop in its number of lots sold (which fell to 4,891 during the quarter). All told, as of Sept. 30, Forestar was in possession of 99,800 lots.
NYSE: FOR
Key Data Points
Revenue guidance beat
For fiscal 2026, Forestar expects to earn revenue of $1.6 billion to $1.7 billion. That sits above the average analyst estimate of just under $1.55 billion. The company is benefiting from continued strong demand for housing, although it's quite dependent on it, as it hasn't strayed from its core competency.
