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Why Is Rayonier (RYN) Up 3.9% Since Its Last Earnings Report?

A month has gone by since the last earnings report for Rayonier Inc.RYN . Shares have added about 3.9% in that time frame.

Will the recent positive trend continue leading up to its next earnings release, or is RYN due for a pullback? 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 drivers.

Rayonier's Q1 Earnings Surpass Estimates, Revenues Up Y/Y

Rayonier reported first-quarter 2018 pro-forma net income per share of 31 cents, comfortably beating the Zacks Consensus Estimate of 16 cents.

Further, the bottom line surpassed the prior-year quarter figure of 27 cents.

Total sales for the first quarter came in at $203 million, up 4.4% year over year, outpacing the Zacks Consensus Estimate of $191 million.

Results reflect decent performance of the Pacific Northwest and New Zealand Timber segments, backed by rise in sawtimber prices, as well as 12% higher harvest volumes. In the Real Estate segment, the company increased its dispositions and also enjoyed higher average pricing.

Segmental Performance

During the reported quarter, pro forma operating income at the company's Southern Timber segment declined to $12.2 million from $13.9 million recorded in the year-ago quarter.

The Pacific Northwest Timber posted pro forma operating income of $4.7 million against operating loss of $0.9 million incurred in first-quarter 2017.

New Zealand Timber reported pro forma operating income of $16 million, significantly up from the prior-year quarter figure of $10 million.

Real Estate's pro forma operating income was $28.1 million, lower than the year-ago figure of $29.7 million.

Trading segment's pro forma operating income was $0.1 million, down from the year-ago figure of $1.1 million.

Finally, pro forma operating loss at the Corporate and Other segment was $4 million compared with a loss of $4.8 million incurred in first-quarter 2017.

Liquidity

Rayonier ended the first quarter with $92.8 million in cash and cash equivalents, down from $112.7 million recorded at the end of first-quarter 2017. Total long-term debt was $996.1 million, down from the year-earlier figure of $1.02 billion.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower. In the past month, the consensus estimate has shifted by 27.7% due to these changes.

VGM Scores

At this time, RYN has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

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

Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.

Outlook

RYN has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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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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