Tejon Ranch (NYSE:TRC) Issues Quarterly Earnings Results

Tejon Ranch (NYSE:TRC) posted its quarterly earnings data on Thursday. The real estate development and agribusiness company reported $0.10 earnings per share for the quarter, topping 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 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 Price Performance

NYSE:TRC traded up $0.21 during mid-day trading on Friday, reaching $16.67. 172,345 shares of the company were exchanged, compared to its average volume of 106,099. 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 stock has a market cap of $450.04 million, a PE ratio of 72.47 and a beta of 0.59. Tejon Ranch has a 12 month low of $15.31 and a 12 month high of $21.31. The company has a fifty day moving average of $18.32 and a 200 day moving average of $18.36.

Hedge Funds Weigh In On Tejon Ranch

A number of large investors have recently modified their holdings of TRC. Russell Investments Group Ltd. increased its holdings 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 purchasing an additional 1,743 shares in the last quarter. BNP Paribas Financial Markets boosted its position in Tejon Ranch by 59.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 2,200 shares of the real estate development and agribusiness company’s stock valued at $37,000 after buying an additional 823 shares during the last quarter. Strs Ohio acquired a new stake in shares of Tejon Ranch in the 1st quarter valued at $65,000. Raymond James Financial Inc. acquired a new stake in shares of Tejon Ranch in the 2nd quarter valued at $122,000. Finally, Campbell & CO Investment Adviser LLC bought a new stake in shares of Tejon Ranch during the fourth quarter worth $173,000. 60.63% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings restated 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, According to data from MarketBeat.com, the company presently 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.