Forestar Group Inc. Reports Increased Revenue and Strong Residential Lot Sales
Segments of Revenue
The company's revenue for the quarter was $368.9 million, a significant increase from the $308.5 million reported in the same period last year. The majority of this revenue was generated from residential lot sales, which amounted to $334.8 million, up from $295.1 million in the same quarter last year. Deferred development lot sales contributed $10.3 million to the revenue, up from $7.9 million the previous year. Tract sales and other revenue streams brought in $23.8 million, a considerable increase from the $5.5 million reported in the same period last year.
The increase in revenue can be attributed to strong residential lot sales, which saw a significant increase from the previous year. The company also saw an increase in deferred development lot sales and tract sales. The company's progress towards completion of its remaining unsatisfied performance obligations on deferred development projects also contributed to the increase in revenues.
While the company saw an increase in revenue, it also reported an increase in cost of sales, which rose from $234.6 million to $283.9 million. Selling, general and administrative expenses also saw a slight increase from $24.1 million to $26.4 million.
The company reported no equity in earnings of unconsolidated ventures and no gain on sale of assets for the quarter.
Forestar Group Inc. reported a solid financial performance for the latest quarter, with a significant increase in revenue driven by strong residential lot sales and progress on deferred development projects. However, the company also saw an increase in cost of sales and administrative expenses. Overall, the company's financial performance indicates a strong operational strategy and successful execution.