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St. Joe (JOE) Q2 Earnings Beat Estimates, Revenues Increase

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The St. Joe Company (JOE - Free Report) reported second-quarter 2018 net income per share of 12 cents, outpacing the Zacks Consensus Estimate of 5 cents. Notably, the figure excludes a pre-tax benefit of $23.1 million from the RiverTown real estate sale in 2014.  

Total revenues for the quarter came in at $50.4 million compared with $30.6 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 18% from the prior-year quarter to $21.1 million.

Behind the Headline Numbers

In the reported quarter, real-estate revenues came in at $32.1 million, up from $7.2 million recorded in the comparable period last year. Timber revenues were $1.9 million, up from $1.3 million posted in the prior-year quarter.

Further, leasing revenues for the quarter under review came in at $3.1 million, up from the year-ago figure of $2.8 million. St. Joe owned around 809,000 square feet of rentable commercial space, which was 89% leased as of Jun 30, 2018.

Nevertheless, resorts and leisure revenues came in at $13.3 million in the quarter, down from $19.3 million posted in the year-earlier period.

Liquidity

St. Joe exited second-quarter 2018 with cash, cash equivalents and investments of $268.1 million, down from $303.4 million as of Dec 31, 2017.

Conclusion

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

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

 

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

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

 

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, now, look forward to the earnings releases of BBX Capital Corporation (BBX - Free Report) , The Howard Hughes Corporation (HHC - Free Report) and Marcus & Millichap, Inc. (MMI - Free Report) . BBX Capital and Howard Hughes are set to release their quarterly figures on Aug 6, while Marcus & Millichap is slated to report earnings on Aug 7.

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