Forestar Group Whiffs on Revenues

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 16, 2012 at 12:00AM
Other

Forestar Group (NYSE: FOR) reported earnings on May 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Forestar Group whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share expanded.

Margins improved across the board.

Revenue details
Forestar Group logged revenue of $28.1 million. The one analyst polled by S&P Capital IQ foresaw a top line of $57.0 million on the same basis. GAAP reported sales were 5.9% lower than the prior-year quarter's $29.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.08. The one earnings estimate compiled by S&P Capital IQ anticipated $0.11 per share. GAAP EPS were $0.08 for Q1 versus -$0.07 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 63.5%, 110 basis points better than the prior-year quarter. Operating margin was 29.4%, 2,610 basis points better than the prior-year quarter. Net margin was 10.0%, 1,830 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $28.0 million. On the bottom line, the average EPS estimate is -$0.03.

Next year's average estimate for revenue is $267.0 million. The average EPS estimate is $0.43.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 63 members out of 87 rating the stock outperform, and 24 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Forestar Group a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forestar Group is buy, with an average price target of $24.00.

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