Rayonier (RYN) Tops Q4 EPS by 3c, Approves $100M Buyback

Rayonier (NYSE: RYN) reported Q4 EPS of $0.09, $0.03 better than the analyst estimate of $0.06. Revenue for the quarter came in at $137.1 million versus the consensus estimate of $128.59 million.

On February 10, 2016, Rayonier’s Board of Directors approved an additional $100 million share repurchase authorization. Repurchases may be made at management’s discretion from time to time on the open market or through privately negotiated transactions. The repurchase program has no time limit and may be suspended for periods or discontinued at any time.

Outlook

“In 2016, we expect a modest increase in Southern harvest volume, reflecting recent acquisitions, at prices generally comparable to 2015,” added Nunes. “We continue to believe that U.S. housing starts will improve gradually, but that in 2016 we will not reach conditions favorable to significantly improve sawlog pricing. In the Pacific Northwest, we expect volumes comparable to 2015 and are cautiously optimistic that prices will improve from current levels, which will largely depend upon export market conditions. In our New Zealand joint venture, we anticipate a reduction in harvest volume of approximately 10% due to timber age-class variations, with average prices broadly in line with 2015. Also, we are on track with our previously announced plans to recapitalize our New Zealand joint venture and thereby reduce consolidated interest expense while increasing our ownership interest from 65% to an estimated 77%.”

“In our Real Estate segment, we expect continued steady demand for rural properties. We also anticipate strengthening interest in selected development properties, particularly as we begin to sell parcels within our East Nassau mixed use development project, which we anticipate in the second half of 2016. We are also planning on a higher level of investment in 2016 as we ramp up our development efforts in this area,” concluded Nunes.

For earnings history and earnings-related data on Rayonier (RYN) click here.

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