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Rayonier (RYN) Beats Q2 Earnings & Revenue Estimates

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Rayonier Inc. (RYN - Free Report) recorded second-quarter 2021 pro forma net income per share of 22 cents, beating the Zacks Consensus Estimate of 10 cents. Also, the figure compares favorably with prior-year quarter tally of 11 cents per share.

Results reflect a year-over-year increase in the top line. Revenues jumped 49% year over year to $291.4 million. In addition, the revenue figure surpassed the Zacks Consensus Estimate of $218.4 million.

According to David Nunes, president and CEO of Rayonier, “Our second quarter results reflect continued momentum across our businesses and a markedly improved operating environment compared to the prior year.”

Moreover, adjusted EBITDA of $95.3 million climbed 21% from the prior-year quarter. Favorable performance of each of the company’s timber segments more than offset lower adjusted EBITDA in the Real Estate segment.

Segmental Performance

In the second quarter, pro-forma operating income at the company’s Southern Timber segment came in at $17 million, up from the prior-year quarter’s $11.2 million. Results reflect higher net stumpage prices, lower leased land and other expenses, lower depletion rates and higher non-timber income, partially muted by lower volumes.

The Pacific Northwest Timber segment reported pro-forma operating income of $1.9 million against the operating loss of $6.7 million posted in second-quarter 2020. This was mainly due to higher net stumpage prices, lower costs and higher non-timber income, partly offset by higher depletion rates.

The New Zealand Timber segment recorded pro-forma operating income of $20.7 million, up from the year-earlier number of $5 million. Results mirror higher net stumpage prices, increased volumes, favorable foreign exchange impacts and lower depletion rates, partly muted by lower carbon credit sales and higher costs.

The Timber Funds segment reported pro-forma operating income of $0.4 million in the second quarter compared with the prior-year quarter tally of $0.1 million.

However, Real Estate’s pro-forma operating income was $20.2 million, down from the year-ago period’s $24.8 million. This chiefly resulted from a lower number of acres sold, partially offset by a 94% increase inweighted-average prices.

The Trading segment reported a pro-forma operating income of $0.4 million in the second quarter, up from the prior-year quarter figure of $0.1 million.

Rayonier exited second-quarter 2021 with $309.8 million in cash and cash equivalents (excluding Timber Funds), up from the $80.5 million recorded as of Dec 31, 2020. Total long-term debt was $1.19 billion, down from $1.3 billion as of Dec 31, 2020.

Outlook

Management projects full-year 2021 earnings per share of 69-75 cents, pro forma earnings per share of 51-57and adjusted EBITDA of $300-$320 million. The guidance is based on solid first half results and management’s expectation for the rest of the year. The Zacks Consensus Estimate for 2021 earnings per share is currently pinned at 41 cents.

Currently, Rayonier carries a Zacks Rank #3 (Hold). 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. price-consensus-eps-surprise-chart | Rayonier Inc. Quote

We now look forward to other REITs like Regency Centers Corporation (REG - Free Report) , Lamar Advertising Company (LAMR - Free Report) and Outfront Media Inc. (OUT - Free Report) , which are scheduled to release their quarterly earnings today.