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Why Is St. Joe (JOE) Down 4.6% Since Last Earnings Report?

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It has been about a month since the last earnings report for St. Joe (JOE - Free Report) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.

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

St. Joe Q3 Earnings Beat Estimates, Costs Decline

St. Joe’s third-quarter 2018 net income per share of 9 cents outpaced the Zacks Consensus Estimate of 5 cents. The figure also compared favorably with 8 cents reported in the year-ago quarter.  

Total revenues for the quarter came in at $23.7 million compared with $33.9 million recorded a year ago. This decline was attributed to lower real-estate revenues and resorts and leisure business revenues.However, the quarter witnessed a slight rise in leasing revenues.

The company’s total expenses for the quarter declined 25% from the prior-year quarter to $21.8 million.

Behind the Headline Numbers

In the reported quarter, real-estate revenues came in at $6.2 million, down from $10.7 million a year ago. Timber revenues were $1.8 million, below $2 million generated in the prior-year quarter.

Further, leasing revenues came in at $3.1 million, up from the year-ago figure of $3 million. St. Joe owned around 808,000 square feet of rentable space, which was 89% leased as of Sep 30, 2018.

Nevertheless, resorts and leisure revenues came in at $12.6 million in the quarter, down from $18.2 million posted in the year-earlier quarter.

Liquidity

St. Joe exited the third quarter with cash, cash equivalents and investments of $249.2 million, down from $303.4 million as of Dec 31, 2017.

How Have Estimates Been Moving Since Then?

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

VGM Scores

At this time, St. Joe has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

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

Outlook

St. Joe has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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