Rayonier (RYN) Misses Q4 EPS by 1c, Revenues Beat

Rayonier (NYSE: RYN) reported Q4 EPS of $0.02, $0.01 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $166.1 million versus the consensus estimate of $156.9 million.

Outlook

“In 2019, we expect to achieve net income attributable to Rayonier of $60 to $69 million and Adjusted EBITDA of $270 to $290 million,” added Nunes. “The projected year-over-year decline in consolidated financial results is driven primarily by a much lower expected contribution from the Real Estate segment following an extraordinarily strong level of Real Estate activity in 2018, which was bolstered by two significant transactions in Louisiana and New Zealand. In our timber segments, we expect total Adjusted EBITDA to be slightly lower, with gains in Southern Timber offset by lower Adjusted EBITDA in Pacific Northwest Timber and New Zealand Timber. In our Southern Timber segment, we expect to achieve full-year harvest volumes of 6.2 to 6.3 million tons, while we expect modest pricing improvements in certain regions driven by stronger overall demand. In our Pacific Northwest Timber segment, we expect to achieve harvest volumes of 1.3 to 1.4 million tons, while we expect meaningfully lower average sawtimber prices driven by reduced export demand and market uncertainty regarding China tariffs. In our New Zealand Timber segment, we expect to achieve harvest volumes of 2.7 to 2.8 million tons, while we expect continued strong demand and pricing as Chinese customers seek supply from non-tariff countries, which we expect will be offset by increased shipping and logging costs. In our Real Estate segment, we remain focused on opportunistically unlocking the long-term value of our HBU development and rural property portfolio, and thus continue to expect that period-to-period results will be lumpy. Following outsized Real Estate results in 2018, we currently anticipate more normalized transaction activity in 2019.”

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

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