Forestar Group Inc. (FOR) saw its stock plummet 5.51% during the intraday session on Tuesday, following the release of its fiscal Q1 financial results. The sharp decline came despite the company reporting a 9% year-over-year increase in revenue to $273 million, which beat analyst expectations.
The residential lot developer's net income for the quarter fell 7% to $15.4 million, with earnings per share (EPS) dropping to $0.30 from $0.32 a year earlier. While the EPS slightly exceeded estimates, the decline in profitability appears to have disappointed investors, leading to the stock's downward movement.
Forestar maintained a positive outlook for fiscal 2026, expecting to deliver 14,000-15,000 lots and generate $1.6-$1.7 billion in revenue. Analysts remain bullish on the stock, with a median 12-month price target of $34.50, representing a 25.9% upside from its recent closing price.
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