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What to Expect from Rayonier (RYN) this Earnings Season?
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Real estate investment trust (“REIT”) Rayonier Inc. (RYN - Free Report) is expected to report third-quarter 2016 results on Nov 2, after the market closes.
Rayonier’s second quarter pro forma net income per share came in at 7 cents, significantly beating the Zacks Consensus Estimate of 3 cents. In all the trailing four quarters, the company reported positive surprises with an average annual beat of 63.49%. The Zacks Consensus estimate for third-quarter earnings is currently pegged at 14 cents.
Let’s see how things have shaped up prior to this announcement.
Factors to Consider
Rayonier’s timberland portfolio is located in the productive timber-producing regions of the U.S. South, Pacific Northwest and New Zealand. Added to this, the favorable demand-supply dynamics has raised the pricing power of the company.
The company constantly strives to enhance its timberland base through disciplined deals. Moreover, recent developments in biogenetics & cloning, which are helping in the rapid growth of trees, are expected to drive its growth.
However, Rayonier encounters tough competition from different local and national players regarding the quality and the price of the timberland. Moreover, timberland business is monitored by federal rules and state forestry commissions, which all the timberland REITs have to abide by.
Overall, Rayonier’s performance during the quarter was inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate remained unchanged over the last seven days.
Earnings Whispers
Our proven model does not conclusively show that Rayonier will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate currently stand at 14 cents, which translates into a Earnings ESP of 0.00%.
Zacks Rank: Rayonier’s Zacks Rank #3, when combined with a 0.00% Earnings ESP makes surprise prediction difficult.
Note that we caution against stocks with Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks in the real estate investment trust sector you may want to consider, as our model shows that they have the right combination of elements to post a positive surprise this quarter:
National Health Investors Inc. (NHI - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3. The company will report its results on Nov 7.
Altisource Residential Corporation has an Earnings ESP of + 66.22% and a Zacks Rank #3. The company will report its results on Nov 7.
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What to Expect from Rayonier (RYN) this Earnings Season?
Real estate investment trust (“REIT”) Rayonier Inc. (RYN - Free Report) is expected to report third-quarter 2016 results on Nov 2, after the market closes.
Rayonier’s second quarter pro forma net income per share came in at 7 cents, significantly beating the Zacks Consensus Estimate of 3 cents. In all the trailing four quarters, the company reported positive surprises with an average annual beat of 63.49%. The Zacks Consensus estimate for third-quarter earnings is currently pegged at 14 cents.
Let’s see how things have shaped up prior to this announcement.
Factors to Consider
Rayonier’s timberland portfolio is located in the productive timber-producing regions of the U.S. South, Pacific Northwest and New Zealand. Added to this, the favorable demand-supply dynamics has raised the pricing power of the company.
RAYONIER INC Price and EPS Surprise
RAYONIER INC Price and EPS Surprise | RAYONIER INC Quote
The company constantly strives to enhance its timberland base through disciplined deals. Moreover, recent developments in biogenetics & cloning, which are helping in the rapid growth of trees, are expected to drive its growth.
However, Rayonier encounters tough competition from different local and national players regarding the quality and the price of the timberland. Moreover, timberland business is monitored by federal rules and state forestry commissions, which all the timberland REITs have to abide by.
Overall, Rayonier’s performance during the quarter was inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate remained unchanged over the last seven days.
Earnings Whispers
Our proven model does not conclusively show that Rayonier will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate currently stand at 14 cents, which translates into a Earnings ESP of 0.00%.
Zacks Rank: Rayonier’s Zacks Rank #3, when combined with a 0.00% Earnings ESP makes surprise prediction difficult.
Note that we caution against stocks with Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks in the real estate investment trust sector you may want to consider, as our model shows that they have the right combination of elements to post a positive surprise this quarter:
National Health Investors Inc. (NHI - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3. The company will report its results on Nov 7.
Parkway, Inc. will also report its results on Nov 7. It has an Earnings ESP of +28.89% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Altisource Residential Corporation has an Earnings ESP of + 66.22% and a Zacks Rank #3. The company will report its results on Nov 7.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>