JOE Misses Estimates, Still in Red - Analyst Blog
29 Fevereiro 2012 - 7:00AM
Zacks
The St. Joe
Company (JOE), a publicly held real estate company,
reported a net loss of $328.6 million or $3.56 per share in fourth
quarter 2011 compared with a net loss of $2.7 million or 3 cents in
the year-earlier quarter. The year-over-year decrease in earnings
was primarily due to a pre-tax non-cash impairment charge of $374.8
million or $3.50 per share after-tax, excluding which the recurring
earnings for the reported quarter were (6 cents) per share that
missed the Zacks Consensus Estimate of (3 cents).
For the fourth quarter of 2011,
total revenue stood at $19.8 million compared with $37.1 million in
the year-ago quarter. Total revenue for the reported quarter was
well ahead of the Zacks Consensus Estimate of $16 million.
By segment, St. Joe generated $9.6
million from its Residential segment during the quarter versus $9.5
million in the year-ago quarter. The Commercial segment generated
$1.9 million in the reported quarter vis-à-vis $0.4 million in the
year-earlier quarter, while Forestry segment recorded $7.7 million
versus $7.8 million in the comparable period. Revenue from Rural
Land Sales during the quarter was $0.6 million compared to $19.4
million in the prior-year quarter.
Subsequent to the quarter-end, the
company adopted a new real estate investment strategy, which is
focused on reducing future capital outlays and employing new
risk-adjusted investment return criteria for evaluating the
company’s properties and future investments in such properties. In
accordance with this new strategy, St. Joe intends to significantly
reduce and reprioritize future capital expenditures for
infrastructure, amenities and master planned community development,
and reposition certain assets to encourage increased absorption of
such properties in their respective markets.
The new investment strategy is
further expected to build upon the successful cost reduction
initiatives that were previously implemented and enable the company
to increase both its short and medium-term cash flows, reduce
long-term risk and maintain strong cash position necessary to
weather a tepid and volatile real estate environment.
St. Joe incurred total cash
overheads of $7.2 million for the reported quarter compared with
$13.5 million in the prior-year period. At quarter-end, the company
had $162.4 million of cash and $23.3 million of pledged securities.
By the end of fourth quarter 2011, total debt outstanding was $53.5
million, out of which $23.3 million was defeased debt.
We maintain our long-term ‘Neutral’
recommendation on St. Joe, which currently has a Zacks #3 Rank that
translates into a short-term ‘Hold’ rating. One of its competitors,
Rayonier Inc. (RYN) presently also has a ‘Neutral’
recommendation and a Zacks #3 Rank.
ST JOE CO (JOE): Free Stock Analysis Report
RAYONIER INC (RYN): Free Stock Analysis Report
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