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Why Is Rayonier (RYN) Down 4.4% 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 4.4% in that time frame, underperforming the S&P 500.
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 Q3 Earnings Top Estimates, Revenues Surge Y/Y
Rayonier came up with third-quarter 2021 pro forma net income per share of 35 cents, beating the Zacks Consensus Estimate of 14 cents. Also, the figure compares favorably with the prior-year quarter’s 6 cents per share.
Results reflect a year-over-year increase in the top line. Revenues surged 83.4% year over year to $364.7 million. In addition, the revenue figure surpassed the Zacks Consensus Estimate of $225.5 million.
According to David Nunes, president and CEO of Rayonier, “We are pleased to report our strongest quarterly Adjusted EBITDA result since our separation into a ‘pureplay’ timberland REIT in 2014.”
The adjusted EBITDA of $114.6 million soared 70.5% from the prior-year quarter. This was fueled by the solid performance of each of the company’s timber segments as well as an outsized contribution from the Real Estate segment.
Solid Segmental Performance
In the quarter, the pro-forma operating income at Southern Timber segment came in at $12.8 million, up from the prior-year quarter’s $5.1 million. Results highlight higher net stumpage prices, lower costs and reduced depletion rates, partially muted by soft volumes.
The Pacific Northwest Timber segment reported pro-forma operating income of $2.1 million against the operating loss of $1.8 million posted in third-quarter 2020. This mainly resulted from the higher net stumpage prices, lower costs and depletion rates, partly offset by bleak non-timber income.
The New Zealand Timber segment recorded pro-forma operating income of $13.3 million, up from the year-earlier quarter’s $10.7 million. Results mirror higher net stumpage prices, favorable foreign-exchange impacts and lower depletion rates, partly muted by reduced carbon credit sales and elevated costs.
The Timber Funds segment reported pro-forma operating income of $41.3 million in the third quarter against the prior-year quarter’s loss of $12.4 million.
Real Estate’s pro-forma operating income was $46.1 million, up from the year-ago period’s $9.5 million. This chiefly resulted from the significant increase in weighted-average prices, partially offset by a 61% reduction in the number of acres sold.
The Trading segment reported a nil pro-forma operating income in the third quarter compared to the prior-year quarter loss of $0.6 million.
Rayonier exited third-quarter 2021 with $419.6 million in cash and cash equivalents (excluding Timber Funds), up from the $80.5 million recorded as of Dec 31, 2020. The total long-term debt was $1.17 billion, down from $1.3 billion as of Dec 31, 2020.
Outlook
Management projects full-year 2021 earnings per share of $1.05-$1.08 cents, pro forma earnings per share of 62-65 cents and adjusted EBITDA of $320-$330 million. The guidance is based on solid year-to-date results and management’s expectation for the fourth quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -65.33% due to these changes.
VGM Scores
Currently, Rayonier has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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 #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Rayonier (RYN) Down 4.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Rayonier (RYN - Free Report) . Shares have lost about 4.4% in that time frame, underperforming the S&P 500.
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 Q3 Earnings Top Estimates, Revenues Surge Y/Y
Rayonier came up with third-quarter 2021 pro forma net income per share of 35 cents, beating the Zacks Consensus Estimate of 14 cents. Also, the figure compares favorably with the prior-year quarter’s 6 cents per share.
Results reflect a year-over-year increase in the top line. Revenues surged 83.4% year over year to $364.7 million. In addition, the revenue figure surpassed the Zacks Consensus Estimate of $225.5 million.
According to David Nunes, president and CEO of Rayonier, “We are pleased to report our strongest quarterly Adjusted EBITDA result since our separation into a ‘pureplay’ timberland REIT in 2014.”
The adjusted EBITDA of $114.6 million soared 70.5% from the prior-year quarter. This was fueled by the solid performance of each of the company’s timber segments as well as an outsized contribution from the Real Estate segment.
Solid Segmental Performance
In the quarter, the pro-forma operating income at Southern Timber segment came in at $12.8 million, up from the prior-year quarter’s $5.1 million. Results highlight higher net stumpage prices, lower costs and reduced depletion rates, partially muted by soft volumes.
The Pacific Northwest Timber segment reported pro-forma operating income of $2.1 million against the operating loss of $1.8 million posted in third-quarter 2020. This mainly resulted from the higher net stumpage prices, lower costs and depletion rates, partly offset by bleak non-timber income.
The New Zealand Timber segment recorded pro-forma operating income of $13.3 million, up from the year-earlier quarter’s $10.7 million. Results mirror higher net stumpage prices, favorable foreign-exchange impacts and lower depletion rates, partly muted by reduced carbon credit sales and elevated costs.
The Timber Funds segment reported pro-forma operating income of $41.3 million in the third quarter against the prior-year quarter’s loss of $12.4 million.
Real Estate’s pro-forma operating income was $46.1 million, up from the year-ago period’s $9.5 million. This chiefly resulted from the significant increase in weighted-average prices, partially offset by a 61% reduction in the number of acres sold.
The Trading segment reported a nil pro-forma operating income in the third quarter compared to the prior-year quarter loss of $0.6 million.
Rayonier exited third-quarter 2021 with $419.6 million in cash and cash equivalents (excluding Timber Funds), up from the $80.5 million recorded as of Dec 31, 2020. The total long-term debt was $1.17 billion, down from $1.3 billion as of Dec 31, 2020.
Outlook
Management projects full-year 2021 earnings per share of $1.05-$1.08 cents, pro forma earnings per share of 62-65 cents and adjusted EBITDA of $320-$330 million. The guidance is based on solid year-to-date results and management’s expectation for the fourth quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -65.33% due to these changes.
VGM Scores
Currently, Rayonier has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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 #1 (Strong Buy). We expect an above average return from the stock in the next few months.