Rayonier (RYN) Up 2.1% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Rayonier (RYN). Shares have added about 2.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Rayonier due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Rayonier's Q4 Earnings Beat Estimates, Revenues Rise Y/YRayonier reported a fourth-quarter 2024 pro-forma net income of 27 cents per share, beating the Zacks Consensus Estimate of 19 cents. The reported figure compares favorably with the prior-year quarter’s 17 cents.The company’s Southern Timber, New Zealand Timber and Real Estate segments displayed solid results. However, weakness in the Pacific Northwest Timber and Trading segments was noticed.Total revenues were $726.3 million, which surpassed the Zacks Consensus Estimate of $203 million. On a year-over-year basis, the figure increased 55.4%. Adjusted EBITDA came in at $115.1 million, up from $93.7 million in the prior-year period.According to Mark McHugh, president and CEO of Rayonier, “Our full-year 2024 financial performance demonstrates our resilience and nimble execution amid persistent market headwinds.”In 2024, Rayonier reported pro forma net income per share of 47 cents, up from 36 cents in the prior year. The figure was above the Zacks Consensus Estimate of 38 cents. Total revenues of $1.26 billion increased 19.5% year over year. The figure outpaced the Zacks Consensus Estimate of $740 million.Rayonier’s Segmental PerformanceIn the fourth quarter, the pro-forma operating income in the company’s Southern Timber segment came in at $18 million, which increased 31.4% from the prior-year quarter. The rise was due to higher non-timber income, lower costs and lower depletion expenses, partly offset by lower volumes and lower net stumpage realizations.The Pacific Northwest Timber segment reported a pro-forma operating loss of $1.3 million compared to a loss of $2.5 million a year ago. This was driven by lower costs, lower depletion expenses and higher non-timber income, partially offset by lower net stumpage realizations.The New Zealand Timber segment recorded pro forma operating income of $14.2 million, up from the year-earlier quarter’s $6.8 million. This rise was due to favorable foreign exchange impacts, higher volumes, higher net stumpage realizations, lower costs and lower depletion rates, partially offset by lower carbon credit income.Real Estate’s pro-forma operating income was $35 million, up from $32.8 million reported in the year-ago period. The higher weighted-average prices led to the rise, partially offset by lower acres sold.The Trading segment reported an operating loss of $0.1 million against an operating income of $0.1 million in the prior-year quarter.Rayonier’s Balance SheetRayonier exited the fourth quarter of 2024 with $323.2 million in cash and cash equivalents, up from $74.2 million as of Sept. 30, 2024.Rayonier’s 2025 OutlookManagement expects full-year net income attributable to Rayonier in the band of $79-$100 million and EPS of 51 cents to 64 cents.The adjusted EBITDA is anticipated to be between $270 million and $300 million.Its full-year guidance excludes the potential impact of any additional asset sales as part of the $1 billion disposition target that the company announced in November 2023.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.The consensus estimate has shifted -41.38% due to these changes.VGM ScoresAt this time, Rayonier has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Rayonier has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rayonier Inc. (RYN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks