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Rayonier (RYN) Q3 Earnings Top Estimates, Revenues Increase
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Rayonier Inc. (RYN - Free Report) reported third-quarter 2017 pro forma net income per share of 19 cents, comfortably beating the Zacks Consensus Estimate of 5 cents. However, the bottom line came in below the prior-year quarter figure of 33 cents.
Total sales for the quarter came in at $177.9 million, up 3.8% year over year. Also, the figure handily surpassed the Zacks Consensus Estimate of $150.8 million.
Results reflect solid performance of Pacific Northwest and New Zealand Timber segments on account of higher harvest volumes and increase in sawtimber prices. However, performance in the Real Estate segment was disappointing primarily due to decline in the number of acres sold.
During the reported quarter, pro forma operating income at the company’s Southern Timber segment rose to $11.5 million from $8.2 million recorded a year ago.
The Pacific Northwest Timber posted pro forma operating income of $1.1 million against operating loss of $3.3 million incurred in third-quarter 2016.
New Zealand Timber reported pro forma operating income of $19.3 million, significantly up from the prior-year quarter figure of $6.6 million.
Real Estate’s pro forma operating income was $11.4 million, substantially below the year-ago figure of $43.1 million.
Trading segment’s pro forma operating income was $1.1 million, up from the year-ago figure of $0.5 million.
Lastly, pro forma operating loss at the Corporate and Other segment was $5.1 million compared with a loss of $4.2 million incurred in third-quarter 2016.
Liquidity
Rayonier ended the quarter with $104.1 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, almost flat with the Dec 31, 2016 tally.
Our Viewpoint
Rayonier owns or leases around 2.7 million acres of timberlands in some of the most productive timber-growing regions. These timberlands are strategically located near the pulpwood consuming mills. Recent developments in the field of biogenetics and consistent cash flow bode well for Rayonier over the long run.
However, the company faces competition from its substitutes and other market players in the timberland sector. Rayonier has to comply with strict regulatory requirements which are subject to frequent changes. This adversely affects its business. In the reported quarter, the company benefited from higher harvest volumes and stronger domestic and export markets.
The stock has gained 13% year to date, underperforming 23.7% rally of the industry it belongs to.
We now look forward to the earnings releases of other companies from the same industry like Armstrong Flooring , JELD-WEN Holding (JELD - Free Report) and The Home Depot (HD - Free Report) . Armstrong Flooring is scheduled to announce results on Nov 6 while JELD-WEN Holding and Home Depot are slated to report on Nov 7 and Nov 14, respectively.
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Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Rayonier (RYN) Q3 Earnings Top Estimates, Revenues Increase
Rayonier Inc. (RYN - Free Report) reported third-quarter 2017 pro forma net income per share of 19 cents, comfortably beating the Zacks Consensus Estimate of 5 cents. However, the bottom line came in below the prior-year quarter figure of 33 cents.
Total sales for the quarter came in at $177.9 million, up 3.8% year over year. Also, the figure handily surpassed the Zacks Consensus Estimate of $150.8 million.
Results reflect solid performance of Pacific Northwest and New Zealand Timber segments on account of higher harvest volumes and increase in sawtimber prices. However, performance in the Real Estate segment was disappointing primarily due to decline in the number of acres sold.
Rayonier Inc. Price, Consensus and EPS Surprise
Rayonier Inc. Price, Consensus and EPS Surprise | Rayonier Inc. Quote
Segmental Performance
During the reported quarter, pro forma operating income at the company’s Southern Timber segment rose to $11.5 million from $8.2 million recorded a year ago.
The Pacific Northwest Timber posted pro forma operating income of $1.1 million against operating loss of $3.3 million incurred in third-quarter 2016.
New Zealand Timber reported pro forma operating income of $19.3 million, significantly up from the prior-year quarter figure of $6.6 million.
Real Estate’s pro forma operating income was $11.4 million, substantially below the year-ago figure of $43.1 million.
Trading segment’s pro forma operating income was $1.1 million, up from the year-ago figure of $0.5 million.
Lastly, pro forma operating loss at the Corporate and Other segment was $5.1 million compared with a loss of $4.2 million incurred in third-quarter 2016.
Liquidity
Rayonier ended the quarter with $104.1 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, almost flat with the Dec 31, 2016 tally.
Our Viewpoint
Rayonier owns or leases around 2.7 million acres of timberlands in some of the most productive timber-growing regions. These timberlands are strategically located near the pulpwood consuming mills. Recent developments in the field of biogenetics and consistent cash flow bode well for Rayonier over the long run.
However, the company faces competition from its substitutes and other market players in the timberland sector. Rayonier has to comply with strict regulatory requirements which are subject to frequent changes. This adversely affects its business. In the reported quarter, the company benefited from higher harvest volumes and stronger domestic and export markets.
Currently, Rayonier carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has gained 13% year to date, underperforming 23.7% rally of the industry it belongs to.
We now look forward to the earnings releases of other companies from the same industry like Armstrong Flooring , JELD-WEN Holding (JELD - Free Report) and The Home Depot (HD - Free Report) . Armstrong Flooring is scheduled to announce results on Nov 6 while JELD-WEN Holding and Home Depot are slated to report on Nov 7 and Nov 14, respectively.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>