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St. Joe (JOE) Q3 Earnings & Revenues Top Estimates, Stock Up

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The St. Joe Company reported third-quarter 2017 net income per share of 8 cents, comfortably surpassing the Zacks Consensus Estimate of 4 cents. The figure also compared favorably with the prior-year quarter tally of 4 cents.

Total revenues for the quarter came in at $33.6 million compared with $27.2 million recorded in the year-ago period. This upswing was driven by higher leasing revenues, timber revenues and real estate revenues. However, the quarter witnessed a slight decline in the resorts and leisure business revenues. The top line also surpassed the Zacks Consensus Estimate of $26 million.

Shares of St. Joe inched up 0.8% to $17.95 during regular trading session on Nov 3, reflecting investors' optimism.

Yet, the company’s total expenses for the quarter escalated 14.1% from the prior-year quarter to $29.2 million.

St. Joe Company (The) Price, Consensus and EPS Surprise

Behind the Headline Numbers

In the reported quarter, real estate revenues came in at $10.7 million, up from $4.2 million recorded in the comparable period last year. Timber revenues at $1.9 million increased from $1.3 million recorded in the prior-year quarter.  

Further, leasing revenues for the third quarter came in at $2.8 million, up from the year-ago quarter figure of $2.7 million. St. Joe’s leasing segment includes around 675,000 of net rentable square feet, which was 85% leased as of Sep 30, 2017.

Nevertheless, resorts and leisure revenues came in at $18.2 million in the reported quarter, down from $19 million posted in the year-ago period.

Liquidity

Finally, St. Joe exited third-quarter 2017 with cash, cash equivalents and investments of $312 million, down from $416.8 million as of Dec 31, 2016.

In Conclusion

St. Joe’s continued efforts to expand the company’s portfolio of income-producing properties, and increase the size and scope of the leasing portfolio proved conducive for its performance in the third quarter. In fact, the reported quarter marked the 11th consecutive quarter of year-over-year growth in the leasing segment revenues.

The company is exploring opportunities to sell assets which are not a strategic fit to its core real-estate development activities, such as residential lots, timber land, rural land and/or related timber rights. These asset-sale efforts provide substantial liquidity to the company which can be deployed for developmental needs. In fact, it shelled out $34.5 million on operating and developing properties.

St. Joe currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We are now looking forward to the earnings releases of LGI Homes, Inc. (LGIH - Free Report) , Marcus & Millichap, Inc. (MMI - Free Report) and Altisource Residential Corporation (RESI - Free Report) , all of which are expected to report their numbers tomorrow.

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