Back to top

Image: Bigstock

St. Joe Company (JOE) Up 3.5% Since Earnings Report: Can It Continue?

Read MoreHide Full Article

It has been about a month since the last earnings report for St. Joe Company (JOE - Free Report) . Shares have added about 3.5% 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.

St. Joe Company Q1 Earnings Beat Estimates, Revenues Down Y/Y

St. Joe reported first-quarter 2017 net income per share of $0.06, which compared favorably with the Zacks Consensus Estimate of a loss of $0.03. However, the figure was lower than the year-ago quarter earnings of $0.12.

Total revenue for the quarter came in at $13.2 million compared with $20.3 million recorded in the prior-year period. Decline in real estate revenue primarily dragged down the top-line figure. Moreover, the prior-year period result included a $3.4 million unimproved land sale with a gross profit of $3.3 million.

Nevertheless, the company’s total expenses for the quarter declined 14.6% from the prior-year quarter to $18.1 million.

Quarter in Detail

In the reported quarter, real estate revenue came in at $1.5 million, down from $7.1 million recorded in the comparable period last year. Resorts and leisure revenues were $8.1 million in the reported quarter, down from $8.7 million posted in the year-ago period.  Also, timber revenue decreased to $1.2 million from $2.1 million in the prior-year quarter.

However, leasing revenues remained flat year over year at $2.4 million. St. Joe’s leasing segment includes around 604,000 of net rentable square feet, which was 86% leased as of Mar 31, 2017. This compared with about 589,000 of net rentable square feet that was 84% leased as of Mar 31, 2016.

In addition, investment income for the quarter came in at $10.4 million in the first quarter, up from $2.7 million recorded in the year-earlier period. This is attributed to higher interest income and dividend income due to changes in the company's investment portfolio, and a sale of investments at a realized gain of $3.1 million.

Finally, St. Joe exited first-quarter 2017 with cash, cash equivalents and investments of $392.6 million, down from $416.8 million as of Dec 31, 2016. The decline was due to the $34.2-million of cash utilized for stock repurchases, offset by net receipts from the company's operations and other activities.

How Have Estimates Been Moving Since Then?

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

St. Joe Company Price and Consensus

 

VGM Scores

Currently, the stock has an average Growth Score of 'C', a grade with the same score on the momentum front. 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 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.

The company's stock is suitable solely for growth based on our styles scores.

Outlook

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


St. Joe Company (The) (JOE) - free report >>

Published in