Residential lot developer Forestar Group (NYSE: FOR) will be announcing earnings results this Thursday before market hours. Here’s what you need to know.
Forestar Group missed analysts’ revenue expectations last quarter, reporting revenues of $407 million, up 4.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and full-year revenue guidance slightly missing analysts’ expectations.
Is Forestar Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Forestar Group’s revenue to decline 9.1% year on year, a reversal from the 21.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Forestar Group has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Forestar Group’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CBRE delivered year-on-year revenue growth of 12.7%, missing analysts’ expectations by 2.3%, and Hasbro reported revenues up 15%, topping estimates by 7.9%. CBRE traded down 8.4% following the results while Hasbro was up 15.7%.
Read our full analysis of CBRE’s results here and Hasbro’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Forestar Group’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $34 (compared to the current share price of $26.28).
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