Tejon Ranch (NYSE:TRC) Releases Earnings Results, Beats Estimates By $0.08 EPS

Tejon Ranch (NYSE:TRC) posted its earnings results on Thursday. The real estate development and agribusiness company reported $0.10 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.08, FiscalAI reports. Tejon Ranch had a net margin of 10.62% and a return on equity of 1.23%. The firm had revenue of $14.26 million during the quarter, compared to analyst estimates of $8.64 million.

Here are the key takeaways from Tejon Ranch’s conference call:

• Second-quarter results improved materially: revenue increased across all segments, adjusted EBITDA rose approximately 47% year over year, and net income reached $2.6 million versus a $1.7 million loss a year earlier. Trailing-12-month adjusted EBITDA increased 21% to $29.8 million.
• The Dedeaux Properties 1B transaction generated $6.9 million of revenue and supported a 60/40 joint venture to develop a 510,000-square-foot Class A industrial building, with delivery targeted for early 2027. Management views the project as an example of monetizing land while retaining an ongoing economic interest with limited net capital outlay.
• The company reported approximately $79 million of liquidity and a 16.3% debt-to-capital ratio, while year-to-date expenses declined nearly 18% excluding variable land and water costs. Management is also pursuing opportunistic water sales and exploring infrastructure investments to improve monetization of its water assets.
• Management acknowledged that farming and ranching have not generated adequate returns and said it is conducting an ongoing strategic review focused on projected total shareholder return and capital allocation. Centennial remains dependent on environmental reapproval, possible litigation, mapping, infrastructure design, and financing; management expects county hearings before year-end but could not provide a construction start date.

Tejon Ranch Trading Up 1.3%

TRC stock traded up $0.21 during midday trading on Friday, reaching $16.67. 172,345 shares of the company traded hands, compared to its average volume of 106,099. The firm has a market capitalization of $450.04 million, a price-to-earnings ratio of 72.47 and a beta of 0.59. Tejon Ranch has a 52-week low of $15.31 and a 52-week high of $21.31. The business has a 50 day moving average of $18.32 and a 200-day moving average of $18.36. The company has a debt-to-equity ratio of 0.22, a quick ratio of 2.25 and a current ratio of 2.76.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of TRC. Russell Investments Group Ltd. raised its stake in shares of Tejon Ranch by 688.9% in the third quarter. Russell Investments Group Ltd. now owns 1,996 shares of the real estate development and agribusiness company’s stock valued at $32,000 after acquiring an additional 1,743 shares during the period. BNP Paribas Financial Markets boosted its stake in shares of Tejon Ranch by 59.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,200 shares of the real estate development and agribusiness company’s stock worth $37,000 after purchasing an additional 823 shares during the period. Strs Ohio purchased a new position in shares of Tejon Ranch during the 1st quarter worth about $65,000. Raymond James Financial Inc. bought a new position in Tejon Ranch during the 2nd quarter valued at about $122,000. Finally, Campbell & CO Investment Adviser LLC bought a new position in Tejon Ranch during the 4th quarter valued at about $173,000. 60.63% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reiterated a “sell (d+)” rating on shares of Tejon Ranch in a research report on Thursday, July 2nd. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock currently has an average rating of “Sell”.

Tejon Ranch Company Profile

Tejon Ranch Corporation (NYSE: TRC) is one of California’s largest private landowners, with a diversified portfolio spanning agriculture, real estate development and natural resource operations. Headquartered in Lebec, California, the company’s holdings encompass approximately 270,000 acres in Kern and Los Angeles counties. Established in 1937 on the historic Rancho Tejon land grant, Tejon Ranch has leveraged its strategic location along Interstate 5 to build a multifaceted enterprise serving both local and regional markets.

In agriculture, Tejon Ranch grows a variety of row crops and permanent plantings, including almonds, pistachios, table grapes and citrus.