Have you been eager to see how Rayonier Inc. (RYN) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Jacksonville, Florida-based timber Real estate investment trust’s (REIT) earnings release this morning:
Earnings Down Y/Y
Rayonier came out with earnings per share of 7 cents, significantly down from 62 cents in the comparable prior-year period. Fourth quarter pro forma earnings per share came at 9 cents that was also below the prior-year quarter figure of 25 cents. The Zacks Consensus Estimate was 8 cents.
Weak top line was primarily responsible for this year-over-year decline.
How Was the Earnings Surprise Trend?
Rayonier doesn’t have a decent earnings surprise history. Though the company had delivered a positive surprise in the prior quarter, overall, the company missed the Zacks Consensus Estimate by an average of 10.19% in the trailing four quarters.
Sales Declined Y/Y
Rayonier posted sales of $147.4 million, which compared unfavorably with the year-ago number of $238.5 million. The Zacks Consensus Estimate for the same was $141 million.
Key Developments to Note:
Rayonier accomplished the spin-off of the Performance Fibers business in 2014 and started the implementation of a realigned strategy. For 2015, the company expects sales to be around $575–600 million and capital expenditure of $65–68 million. The company is planning for Pacific Northwest harvest volumes to be around 14% lower than the 2014 levels, but expects harvest volumes in the South to be moderately above the 2014 levels.
What Zacks Rank Says
Rayonier currently has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this RYN earnings report later!
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