U.S. Markets closed

St. Joe (JOE) Q1 Earnings Slip Year Over Year, Stock Down

Zacks Equity Research
1 / 2

Is T. Rowe Price Mid-Cap Value Fund (TRMCX) a Strong Mutual Fund Pick Right Now?

Mutual Fund Report for TRMCX

The St. Joe Company JOE reported first-quarter 2018 net income per share of one cent compared with six cents, recorded in the prior-year quarter. However, the prior-year quarter’s net income included a benefit of $3.5 million from an insurance settlement and net realized gains of $3.1 million from the sale of investments. Excluding other items, operating loss for the first quarter of 2018 improved by about $4.1 million.

Total revenues for the quarter came in at $19.9 million compared with $13.5 million, recorded in the year-ago period. This upswing was driven by higher leasing revenues, timber revenues and real-estate revenues.
However, the quarter witnessed a slight decline in the resorts and leisure business revenues.

The company’s total expenses for the quarter escalated 12.7% from the prior-year quarter to $20.4 million.

Shares of St. Joe declined 0.4% to $16.80 during the regular trading session on Apr 26.

Behind the Headline Numbers

In the reported quarter, real-estate revenues came in at $7.7 million, up from $1.5 million recorded in the comparable period last year. Timber revenues were $1.7 million, increasing from $1.3 million recorded in the prior-year quarter.

Further, leasing revenues for the first quarter came in at $3 million, up from the year-ago quarter’s figure of $2.6 million. St. Joe owned around 813,000 square feet of rentable commercial space, which was 89% leased as of Mar 31, 2018.

Nevertheless, resorts and leisure revenues came in at $7.5 million in the reported quarter, down from $8.1 million posted in the year-ago period.


St. Joe exited first-quarter 2018 with cash, cash equivalents and investments of $293.9 million, down from $303.4 million as of Dec 31, 2017.

In Conclusion

St. Joe’s strategy to expand resorts and leisure businesses bodes well for long-term growth. Such efforts, to achieve an optimal portfolio mix, will likely help the company bolster revenues and provide a more stable source of earnings. Further, its continued efforts to enhance its leasing portfolio enabled it to record encouraging growth in this segment.

Nonetheless, inconsistent revenue performance in a number of segments renders volatility to the company’s top line. Further, regional business concentration remains a concern.

St. Joe Company (The) Price, Consensus and EPS Surprise

St. Joe Company (The) Price, Consensus and EPS Surprise | St. Joe Company (The) Quote

St. Joe currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We now look forward to earnings releases of other REITs like Alexandria Real Estate Equities, Inc. ARE, Essex Property Trust Inc. ESS and Regency Centers Corp. REG. Alexandria and Regency Centers are scheduled to release results on Apr 30 while Essex Property is slated to report numbers on May 2.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>