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

Tejon Ranch (NYSE:TRC) issued its earnings results on Thursday. The real estate development and agribusiness company reported $0.10 EPS for the quarter, beating the consensus estimate 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 company had revenue of $14.26 million during the quarter, compared to analysts’ expectations 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%

Shares of TRC traded up $0.21 during trading hours on Friday, reaching $16.67. The stock had a trading volume of 172,345 shares, compared to its average volume of 106,099. The company has a market cap of $450.04 million, a P/E 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 company has a quick ratio of 2.25, a current ratio of 2.76 and a debt-to-equity ratio of 0.22. The firm has a 50-day moving average of $18.32 and a 200 day moving average of $18.36.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Jane Street Group LLC raised its position in shares of Tejon Ranch by 129.4% during the first quarter. Jane Street Group LLC now owns 58,095 shares of the real estate development and agribusiness company’s stock worth $921,000 after purchasing an additional 32,768 shares during the period. Strs Ohio bought a new stake in Tejon Ranch during the 1st quarter worth approximately $65,000. Rhumbline Advisers increased its stake in Tejon Ranch by 3.1% during the 2nd quarter. Rhumbline Advisers now owns 33,448 shares of the real estate development and agribusiness company’s stock worth $567,000 after purchasing an additional 1,018 shares in the last quarter. American Century Companies Inc. raised its holdings in Tejon Ranch by 10.6% during the 2nd quarter. American Century Companies Inc. now owns 52,988 shares of the real estate development and agribusiness company’s stock worth $899,000 after buying an additional 5,064 shares during the period. Finally, Marshall Wace LLP acquired a new stake in Tejon Ranch during the 2nd quarter worth approximately $770,000. 60.63% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reiterated a “sell (d+)” rating on shares of Tejon Ranch in a research report on Thursday, July 2nd. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat, Tejon Ranch 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.