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St. Joe (JOE) Posts Adjusted Loss in Q4, Revenues Rise Y/Y

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The St. Joe Company (JOE - Free Report) reported fourth-quarter 2017 adjusted loss per share of 8 cents, deteriorating from earnings of 4 cents in the prior-year quarter. Results excluded net gain of $9.8 million from the sale of short-term vacation-rental management business and the one-time credit of $33.5 million related to the Tax act.

After considering the above-mentioned gains, net income for the quarter came in at $38.5 million or 58 cents per share.

Total revenues for the quarter came in at $21.5 million compared with $18.7 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 company’s total expenses for the quarter escalated 19.2% from the prior-year quarter to $23.4 million.

For full-year 2017, the company came up with net income per share of 84 cents, comparing favorably with 21 cents recorded in the prior year. Revenues totaled $98.8 million, up 3.2% year over year; while expenses also witnessed a rise of 2.9% from the comparable period last year to $96.5 million.

Behind the Headline Numbers

In the reported quarter, real estate revenues came in at $8.3 million, up from $5.4 million recorded in the comparable period last year. Timber revenues were $1.3 million, increasing from $1.2 million recorded in the prior-year quarter.

Further, leasing revenues for the fourth quarter came in at $2.7 million, up from the year-ago quarter figure of $2.4 million. St. Joe’s owned around 814,000 square feet of rentable commercial space, which was 87% leased as of Dec 31, 2017.

Nevertheless, resorts and leisure revenues came in at $9.2 million in the reported quarter, down from $9.7 million posted in the year-ago period.

Liquidity

St. Joe exited fourth-quarter 2017 with cash, cash equivalents and investments of $303.4 million, down from $416.8 million as of Dec 31, 2016.

In Conclusion

St. Joe’s strategy to expand its resorts and leisure businesses bodes well for long-term growth. Such efforts, to achieve an optimal portfolio mix, will likely help the company bolster its revenues and provide a more stable source of earnings. Further, the company’s continued efforts, to enhance its leasing portfolio, have enabled it to record encouraging growth in this segment.

Nonetheless, inconsistent revenue performance in a number of segments renders volatility to the company’s top line. Further, regional business concentration remains a concern.

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

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.

Stocks Worth A Look

A few better-ranked stocks from the real estate space include CBRE Group, Inc. , FirstService Corp. (FSV - Free Report) and HFF, Inc. (HF - Free Report) .

HFF’s earnings per share estimates for 2018 have been revised 10.9% upward to $2.35 over the past month. The stock has gained 4.7% during the past three months. It sports a Zacks Rank of 1.

CBRE Group’s Zacks Consensus Estimates for 2018 earnings per share have been revised 4.2% upward to $2.98 over the past month. Also, it carries a Zacks Rank #2 (Buy). The company’s share price has risen 7% in three months’ time.

FirstService Corporation’s earnings per share estimates for the current year have inched up 11.8% to $2.65 in a month’s time. Its shares have gained 1.6% over the past three months. The stock has a Zacks Rank of 2.

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