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

Tejon Ranch (NYSE:TRC) issued its quarterly earnings data on Thursday. The real estate development and agribusiness company reported $0.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.08, FiscalAI reports. The company had revenue of $14.26 million during the quarter, compared to the consensus estimate 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 Stock Performance

Shares of TRC traded up $0.21 during midday trading on Friday, reaching $16.67. The stock had a trading volume of 172,345 shares, compared to its average volume of 106,099. The firm has a market cap of $450.04 million, a PE ratio of 72.47 and a beta of 0.59. The firm has a 50 day simple moving average of $18.32 and a 200-day simple moving average of $18.36. Tejon Ranch has a one year low of $15.31 and a one year 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.

Analysts Set New Price Targets

Separately, Weiss Ratings reissued 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, Tejon Ranch has a consensus rating of “Sell”.

Institutional Investors Weigh In On Tejon Ranch

Several hedge funds have recently bought and sold shares of TRC. BNP Paribas Financial Markets grew its stake 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. Rhumbline Advisers lifted its position in Tejon Ranch by 3.1% during the second quarter. Rhumbline Advisers now owns 33,448 shares of the real estate development and agribusiness company’s stock worth $567,000 after acquiring an additional 1,018 shares during the last quarter. Alliancebernstein L.P. lifted its position in Tejon Ranch by 6.1% during the third quarter. Alliancebernstein L.P. now owns 21,022 shares of the real estate development and agribusiness company’s stock worth $336,000 after acquiring an additional 1,200 shares during the last quarter. AQR Capital Management LLC lifted its position in Tejon Ranch by 11.8% during the fourth quarter. AQR Capital Management LLC now owns 11,970 shares of the real estate development and agribusiness company’s stock worth $189,000 after acquiring an additional 1,265 shares during the last quarter. Finally, Russell Investments Group Ltd. boosted its holdings in shares of Tejon Ranch by 688.9% during 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 acquiring an additional 1,743 shares during the period. 60.63% of the stock is currently owned by institutional investors and hedge funds.

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.