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Why Is Rayonier (RYN) Up 4.6% Since the Last Earnings Report?

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A month has gone by since the last earnings report for Rayonier Inc. (RYN - Free Report) . Shares have added about 4.6% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Rayonier’s Q1 Earnings Miss Estimates, Decline Y/Y

Rayonier reported first-quarter 2017 pro forma net income per share of $0.05, missing the Zacks Consensus Estimate of $0.09. Also, the bottom line came in lower than the prior-year quarter’s figure of $0.11.

However, total sales for the quarter came in at $186.5 million, up 38.4% year over year. Also, it surpassed the Zacks Consensus Estimate of $152 million.

Segmental Performance

During the quarter, pro forma operating income at the company’s Southern Timber segment declined to $13.9 million from $15.8 million recorded a year ago.

The Pacific Northwest Timber posted pro forma operating loss of $0.9 million. Pro forma operating income in first-quarter 2016 was of $1.4 million.

New Zealand Timber posted pro forma operating income of $10.3 million, up from the prior-year quarter figure of $4.7 million.

Real Estate posted pro forma operating income of $1.5 million, reflecting a decline from the year-ago figure of $4.2 million.

Trading segment posted pro forma operating income of $1.1 million, up from the year-ago figure of $0.4 million.

Lastly, pro forma operating loss at the Corporate and Other segment narrowed to $4.1 million from a loss of $4.3 million incurred in first-quarter 2016.

Liquidity

Rayonier ended the quarter with $219.4 million in cash and cash equivalents, up from $85.9 million recorded at the end of fourth-quarter 2016.Total long-term debt was $1.03 billion, reflecting a marginal decrease from the Dec 31, 2016 figure.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.

Rayonier Inc. Price and Consensus

 

VGM Scores

At this time, the stock has a poor Growth Score of 'F', while Momentum is doing a bit better with a 'D'. Charting the exact same path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate investors will probably be better served looking elsewhere.

Outlook

The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.


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