Rayonier (RYN) Tops Q4 EPS by 3c, Revenues Miss

Rayonier (NYSE: RYN) reported Q4 EPS of $0.12, $0.03 better than the analyst estimate of $0.09. Revenue for the quarter came in at $178.8 million versus the consensus estimate of $193.29 million.

• Fourth quarter net income attributable to Rayonier of $16.0 million ($0.12 per share) on revenues of $178.8 million
• Fourth quarter operating income of $26.1 million and Adjusted EBITDA of $65.0 million

Outlook

“Excluding the impact of our anticipated mid-year acquisition of Pope Resources, we expect to achieve 2020 net income attributable to Rayonier of $47 to $57 million and Adjusted EBITDA of $245 to $270 million,” added Nunes. “In our Southern Timber segment, we expect to achieve full-year harvest volumes of 6.3 to 6.5 million tons, while we expect overall pricing to be slightly below 2019 average pricing due to geographic mix. In our Pacific Northwest Timber segment, we expect to achieve harvest volumes of 1.4 to 1.5 million tons, while we expect relatively stable pricing as markets have adjusted to lower log export volumes resulting from China tariffs and competition from European salvage volume. We remain cautiously optimistic that export market conditions in both Southern Timber and Pacific Northwest Timber will gradually improve as the U.S.-China Phase 1 trade agreement is implemented and as additional details of the agreement become clear, although we expect near-term headwinds associated with the coronavirus outbreak in China. In our New Zealand Timber segment, we expect to achieve harvest volumes of 2.6 to 2.7 million tons, while we expect lower average export and domestic pricing due to challenging export market conditions resulting from competition from European salvage volume as well as the recent impacts from the coronavirus outbreak. We further expect that Adjusted EBITDA in the New Zealand Timber segment will be negatively impacted by higher shipping costs due to the implementation of low-sulphur fuel requirements. In our Real Estate segment, we expect a significant increase in Adjusted EBITDA based on our current pipeline of transactions, although we anticipate that real estate activity will be heavily weighted to the second half of the year.”

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

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