Tejon Ranch (NYSE:TRC) Issues Earnings Results

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, topping analysts’ consensus estimates of $0.02 by $0.08, FiscalAI reports. The firm had revenue of $14.26 million for the quarter, compared to analysts’ expectations of $8.64 million. Tejon Ranch had a net margin of 10.62% and a return on equity of 1.23%.

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%

NYSE:TRC traded up $0.21 during mid-day trading on Friday, hitting $16.67. 172,345 shares of the company’s stock were exchanged, compared to its average volume of 106,099. Tejon Ranch has a fifty-two week low of $15.31 and a fifty-two week high of $21.31. The company has a current ratio of 2.76, a quick ratio of 2.25 and a debt-to-equity ratio of 0.22. The firm has a market capitalization of $450.04 million, a P/E ratio of 72.47 and a beta of 0.59. The company has a 50 day simple moving average of $18.32 and a 200-day simple moving average of $18.36.

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On Tejon Ranch

Several large investors have recently modified their holdings of the business. Russell Investments Group Ltd. grew 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 worth $32,000 after purchasing an additional 1,743 shares during the last quarter. BNP Paribas Financial Markets increased its holdings in Tejon Ranch by 59.8% in the second 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 purchasing an additional 823 shares during the period. Strs Ohio bought a new position in Tejon Ranch during the 1st quarter worth $65,000. Raymond James Financial Inc. bought a new position in Tejon Ranch during the 2nd quarter worth $122,000. Finally, Campbell & CO Investment Adviser LLC acquired a new position in Tejon Ranch during the 4th quarter worth about $173,000. Institutional investors own 60.63% of the company’s stock.

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.