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Why Is Rayonier (RYN) Down 0.1% Since Last Earnings Report?

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It has been about a month since the last earnings report for Rayonier (RYN - Free Report) . Shares have lost about 0.1% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is Rayonier due for a breakout? 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.

Rayonier's Q3 Net Income & Revenues Surpass Estimates

Rayonier reported third-quarter 2018 net income per share of 18 cents, comfortably beating the Zacks Consensus Estimate of six cents. However, the bottom line came in lower than the prior-year figure of 19 cents.

Total sales for the third quarter came in at $200.9 million, up 8.9% year over year, handily outpacing the Zacks Consensus Estimate of $190 million.

Segmental Performance

During the reported quarter, operating income in the company’s Southern Timber segment decreased to $9.2 million from $11.5 million recorded in the year-ago quarter.

The Pacific Northwest Timber posted operating income of $1.9 million compared to $1.1 million of operating income reported in third-quarter 2017.

New Zealand Timber reported operating income of $16.4 million, down from the prior-year tally of $19.3 million.

Real Estate’s operating income was $24.7 million, higher than the year-ago tally of $11.4 million.

Trading segment’s operating income came in at $0.3 million, down from the year-earlier figure of $1.1 million.

Lastly, the Corporate and Other segment posted loss of $6.2 million compared with a loss of $5.1 million incurred in the comparable period last year.

Liquidity

Rayonier ended the third quarter with $146.3 million in cash and cash equivalents, up from $112.7 million recorded as of Dec 31, 2017. Total long-term debt was $972.4 million, down from the figure of $1.02 billion as on Dec 31, 2017.

2018 Outlook

The company expects to achieve its previously-announced guidance, before considering the impact of the New Zealand timberland sale during third-quarter 2018 that represents an upside to the guidance.

Earlier, it had provided 2018 earnings per share of 63-68 cents, while net income for the year is projected at $82-$89 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -8.33% due to these changes.

VGM Scores

Currently, Rayonier has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Rayonier has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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