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St. Joe Rides on the Growth Trajectory

Zacks Equity Research

On March 20, 2014, we issued an updated research report on The St. Joe Company (JOE).

On Feb 27, St. Joe reported its fourth-quarter and full-year 2013 results. The company broke even in fourth-quarter 2013 compared to the Zacks Consensus Estimate of a loss of a cent per share. The results, however, included a non-cash impairment charge of $5.1 million. The company had incurred a loss of 9 cents in the year-ago period.

Fourth-quarter results were driven by a rise in revenues, which shot up 50.0% to $33.9 million. The revenue figure also surpassed the Zacks Consensus Estimate of $25.0 million.

Recently, St. Joe reaped $562 million (including $200 million as a timber note) by selling around 380,000 acres of its non-strategic timberland and rural land in Northwest Florida to AgReserves Inc.’s subsidiaries.

The move is a strategic fit for St. Joe and provides the company substantial liquidity, which it can deploy for development needs.  St. Joe is currently focused on enhancing resort operations, development of the port at Port St. Joe as well as the active adult residential market, which would help it ride on the growth trajectory going forward.

Over the last 30 days, the Zacks Consensus Estimate for 2014 remained flat at 2 cents while that for 2015 climbed up by 4 cents to 11 cents. Consequently, the stock currently has a Zacks Rank #1 (Strong Buy).

Stocks That Warrant a Look

Investors interested in the real estate development industry may consider stocks like Altisource Residential Corporation (RESI), Brookfield Residential Properties Inc. (BRP) and LGI Homes, Inc. (LGIH). While Altisource Residential and Brookfield Residential carry a Zacks Rank #1, LGI Homes has a Zacks Rank #2 (Buy).

Read the Full Research Report on JOE
Read the Full Research Report on RESI
Read the Full Research Report on BRP
Read the Full Research Report on LGIH

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