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Rayonier's (RYN) Q4 Earnings and Revenues Top Estimates

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Rayonier Inc.’s (RYN - Free Report) reported fourth-quarter 2016 pro forma net income per share of 5 cents, beating the Zacks Consensus Estimate of 3 cents. However, the bottom line came in lower than the prior-year quarter’s tally of 9 cents.

For full-year 2016, the company reported pro forma net income per share of 56 cents, beating the Zacks Consensus Estimate by a penny. Also, the bottom line for 2016 surpassed the prior-year’s tally of 40 cents.

Total sales for the quarter were $220.5 million, up 60.8% year over year. The Zacks Consensus Estimate for total sales was $130 million.

Total sales for 2016 were $788.3 million, up 44.7% from that of 2015. The Zacks Consensus Estimate for total sales for 2016 was $698 million.

Segmental Performance

During the quarter, pro forma operating income at the company’s Southern Timber segment declined to $8.1 million from $12.0 million recorded a year ago.

The Pacific Northwest Timber posted pro forma operating loss of $3.1 million. Pro forma operating loss in the fourth-quarter 2015 was of $0.4 million.

New Zealand Timber posted pro forma operating income of $11.7 million. Pro forma operating loss for fourth-quarter 2015 was $1.1 million.

Real Estate posted pro forma operating income of $6.8 million, down from the year-ago tally of $10.3 million.

Trading segment posted pro forma operating income of $0.5 million, down from the year-ago tally of $0.6 million.

Lastly, pro-forma operating loss at the Corporate and Other segment rose to $5.1 million from a loss of $4.7 million incurred in fourth-quarter 2015.

Liquidity

Rayonier ended the quarter with $85.9 million in cash and cash equivalents, up from $51.8 million recorded at the end of fourth-quarter 2015. Total long-term debt was $1.03 billion, up from $830.6 million as of Dec 31, 2015.

Our Viewpoint

Continuous divestiture of non-strategic timberlands as well as re-investment in strategic timberlands, and strong pulpwood demand from key markets bode well for Rayonier over the long term.

However, tough compliance requirements, cut-throat competition with national and local players and foreign exchange fluctuations keep us concerned about this Zacks Rank #3 (Hold) stock.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Rayonier Inc. Price, Consensus and EPS Surprise
 

Rayonier Inc. Price, Consensus and EPS Surprise | Rayonier Inc. Quote

We now look forward to the earnings releases of DDR Corp. , Vornado Realty Trust (VNO - Free Report) and HCP, Inc. (HCP - Free Report) which are expected next week.

Note: All EPS numbers presented in this write-up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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