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Rayonier's (RYN) Q1 Earnings & Revenues Beat Estimates

Rayonier Inc. 's RYN first-quarter 2016 pro forma net income per share came in at 11 cents, beating the Zacks Consensus Estimate of 8 cents. However, it lagged the first-quarter 2015 figure of 14 cents.

Total sales for the quarter were $134.8 million, down 3.9% year over year. However, the figure surpassed the Zacks Consensus Estimate of $127 million.

Segmental Performance

Pro forma operating income at the company's Southern Timber segment rose to $15.8 million from $12.4 million recorded a year ago.

The Pacific Northwest Timber segment posted pro forma operating income of $1.4 million, down from $2.6 million in first-quarter 2015.

New Zealand Timber segment posted pro forma operating income of $4.7 million, down from pro forma operating income of $5.7 million in the prior-year quarter.

The Real Estate segment posted pro forma operating income of $4.2 million, down from the year-ago tally of $12.6 million.

Pro forma operating income at the Trading segment was $0.4 million, up from $0.3 million in the year-ago quarter.

Lastly, pro-forma operating loss at the Corporate and Other segment declined to $4.3 million from a loss of $5.8 million incurred in first-quarter 2015.

Liquidity

Rayonier ended first-quarter 2016 with $76.2 million in cash and cash equivalents, up from $51.8 million recorded at the end of fourth-quarter 2015. Total long-term debt was $857.4 million, up from $830.6 million as of Dec 31, 2015.

Share Repurchase

During first-quarter 2016, Rayonier bought back shares worth around $0.7 million at an average price of $19.59 a share. As of Mar 31, 2016, the company has $99.3 million share buyback left under authorization.

Our Viewpoint

Continuous divestiture of non-strategic timberlands as well as re-investment in strategic timberlands, and strong pulpwood demand from key markets bode well for Rayonier over the long term. On the other hand, tough compliance requirements, cut-throat competition with national and local players and foreign exchange fluctuations keep us concerned about this Zacks Rank #3 (Hold) stock.

Investors interested in the retail REIT space may consider stocks like Equinix, Inc. EQIX , CoreSite Realty Corporation COR and Essex Property Trust Inc. ESS . All these stocks hold a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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