St Joe Co. Earnings: Loss Made Worse, Company Falls Short of Estimates

The Cheat Sheet

St Joe Co. reported its results for the fourth quarter. The St Joe Company is a real estate development company which is engaged in residential, commercial and industrial development and rural land sales.

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St Joe Earnings Cheat Sheet for the Fourth Quarter

Results: Loss widened to $328.6 million ($3.56 per diluted share) from $2.7 million (loss of 3 cents per share) in the same quarter a year earlier.

Revenue: Fell 46.6% to $19.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: St Joe Co. fell short of the mean analyst estimate of a loss of 3 cents per share. It fell exactly in line with the average revenue estimate of $19.8 million.

Quoting Management: Park Brady, St. Joe’s Chief Executive Officer, said, “In 2011, the new Board directed management to reduce expenses, evaluate our assets, and develop a strategy to reduce future capital outlays and enhance the risk-adjusted return on investment. We believe that this new investment strategy continues to build upon the successful cost reduction initiatives that we previously implemented and positions us to increase our short and medium-term cash flow, reduce our long-term risk and maintain our strong cash position necessary to weather a tepid and uncertain real estate environment and to best exploit our substantial land resources.”

Key Stats:

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the third quarter, it topped the mark by one cent, and in the second quarter, it was ahead by one cent.

Revenue has declined for two quarters in a row. In the third quarter, revenue declined 1.3% to $26.7 million from the year-earlier quarter.

The average estimate for the fiscal year is a loss of 9 cents per share, a rise from 10 cents thirty days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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