PotlatchDeltic Corporation (NASDAQ:PCH) Surpasses Earnings Estimates

• PotlatchDeltic Corporation (NASDAQ:PCH) reported an EPS of $0.066, beating the estimated loss.
• The company's revenue for the quarter was $258.1 million, exceeding expectations.
• Net income for the full year 2024 was $21.9 million, with revenues reaching $1.1 billion.

PotlatchDeltic Corporation (NASDAQ:PCH), a leading real estate investment trust (REIT) specializing in timberland and wood products, has recently outperformed market expectations. The company, which operates extensively in the United States, has shown a remarkable ability to compete with other timberland REITs such as Weyerhaeuser and Rayonier.

On January 27, 2025, PCH announced an earnings per share (EPS) of $0.066, surpassing the anticipated loss of $0.03. This performance indicates a significant turnaround from the previous year's results. The company's revenue for the quarter was approximately $258.1 million, also exceeding the estimated $240.5 million. For the quarter ending December 31, 2024, PCH reported a net income of $5.2 million, or $0.07 per diluted share, showcasing a substantial improvement from the same quarter in 2023, where it experienced a net loss.

For the entirety of 2024, PCH achieved a net income of $21.9 million, or $0.28 per diluted share, with total revenues reaching $1.1 billion. This marks a decrease compared to the previous year, where the company reported higher net income and revenues. However, the adjusted net income for 2023 was $35.0 million, or $0.43 per diluted share, excluding special items.

In 2024, PCH generated a total adjusted EBITDDA of $232.1 million, with a margin of 22%. The company also completed significant expansion and modernization of its sawmill in Waldo, Arkansas, and successfully sold 34,100 acres of Southern timberlands. The quarterly operating income was reported at $13.33 million, with an EBITDA of $13.33 million. The income before tax was $4.43 million, and PCH recorded an income tax benefit of $766,000, further highlighting its financial resilience and strategic growth initiatives.

PotlatchDeltic Corporation (NASDAQ:PCH) is a real estate investment trust (REIT) that focuses on timberland and wood products. The company operates in the United States, managing timberlands and manufacturing wood products. PCH competes with other timberland REITs and wood product manufacturers. On January 27, 2025, PCH is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of -$0.03 and revenue of approximately $240.45 million.

The upcoming earnings announcement will reflect seasonal trends and increased costs. In the previous quarter, PCH's adjusted earnings and revenues exceeded the Zacks Consensus Estimate by 200% and 6.6%, respectively. However, these figures declined by 71.4% and 4.1% compared to the same period last year. This indicates that while PCH has shown strong performance against estimates, it faces challenges in maintaining year-over-year growth.

Over the past four quarters, PCH has surpassed earnings expectations twice, met them once, and missed once, with an average surprise of 50%. Recently, the Zacks Consensus Estimate for adjusted EPS improved from a projected loss of $0.05 to a break-even point, aligning with the results from the same quarter last year. This suggests that analysts have adjusted their expectations based on PCH's recent performance trends.

PCH's financial metrics reveal a high valuation relative to its earnings, with a trailing twelve months (TTM) price-to-earnings (P/E) ratio of approximately 199.63. The price-to-sales ratio stands at about 3.10, indicating that investors are willing to pay $3.10 for every dollar of sales. The enterprise value to sales ratio is 3.93, reflecting the company's total valuation in relation to its sales.

The company's debt-to-equity ratio of 0.50 suggests a moderate level of debt compared to its equity, while the current ratio of 1.24 indicates a reasonable level of liquidity to cover short-term liabilities. Despite a low earnings yield of 0.50%, PCH's enterprise value to operating cash flow ratio of 21.73 may imply a premium valuation based on cash flow generation.

PotlatchDeltic Corporation (NASDAQ:PCH) is a real estate investment trust (REIT) that focuses on timberland and wood products. The company operates in the United States, managing timberlands and manufacturing wood products. PCH competes with other timberland REITs and wood product manufacturers. On January 27, 2025, PCH is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of -$0.03 and revenue of approximately $240.45 million.

The upcoming earnings announcement will reflect seasonal trends and increased costs. In the previous quarter, PCH's adjusted earnings and revenues exceeded the Zacks Consensus Estimate by 200% and 6.6%, respectively. However, these figures declined by 71.4% and 4.1% compared to the same period last year. This indicates that while PCH has shown strong performance against estimates, it faces challenges in maintaining year-over-year growth.

Over the past four quarters, PCH has surpassed earnings expectations twice, met them once, and missed once, with an average surprise of 50%. Recently, the Zacks Consensus Estimate for adjusted EPS improved from a projected loss of $0.05 to a break-even point, aligning with the results from the same quarter last year. This suggests that analysts have adjusted their expectations based on PCH's recent performance trends.

PCH's financial metrics reveal a high valuation relative to its earnings, with a trailing twelve months (TTM) price-to-earnings (P/E) ratio of approximately 199.63. The price-to-sales ratio stands at about 3.10, indicating that investors are willing to pay $3.10 for every dollar of sales. The enterprise value to sales ratio is 3.93, reflecting the company's total valuation in relation to its sales.

The company's debt-to-equity ratio of 0.50 suggests a moderate level of debt compared to its equity, while the current ratio of 1.24 indicates a reasonable level of liquidity to cover short-term liabilities. Despite a low earnings yield of 0.50%, PCH's enterprise value to operating cash flow ratio of 21.73 may imply a premium valuation based on cash flow generation.

PotlatchDeltic (NASDAQ:PCH) shares rose more than 4% intra-day today after BofA Securities analysts upgraded the company to Buy from Neutral, raising the price target to $51 from $49.

The analysts pointed to PotlatchDeltic's over 20% underperformance year-to-date as a key factor in the upgrade, noting that while near-term fundamental catalysts may be limited, the stock offers more than 20% upside potential. The analysts highlighted that lumber prices, which have been at a cyclical low, present an opportunity for future growth. Factors such as industry capacity cuts, tariffs, and cost-curve support could lead to a rebound in lumber pricing, which directly benefits PotlatchDeltic's results. The analysts noted that for every $50 per thousand board feet (mbf) increase in lumber prices, PotlatchDeltic’s EBITDA could rise by approximately 25%, which would also positively impact timber pricing in regions like Idaho, where prices are tied to lumber trends.

Additionally, PotlatchDeltic is expected to see improved lumber margins due to its favorable cost structure, particularly following the expansion of its Waldo mill, which is projected to add about 85 million board feet of capacity. This gives the company a stronger competitive position in the lumber market moving forward.

PotlatchDeltic (NASDAQ:PCH) shares rose more than 4% intra-day today after BofA Securities analysts upgraded the company to Buy from Neutral, raising the price target to $51 from $49.

The analysts pointed to PotlatchDeltic's over 20% underperformance year-to-date as a key factor in the upgrade, noting that while near-term fundamental catalysts may be limited, the stock offers more than 20% upside potential. The analysts highlighted that lumber prices, which have been at a cyclical low, present an opportunity for future growth. Factors such as industry capacity cuts, tariffs, and cost-curve support could lead to a rebound in lumber pricing, which directly benefits PotlatchDeltic's results. The analysts noted that for every $50 per thousand board feet (mbf) increase in lumber prices, PotlatchDeltic’s EBITDA could rise by approximately 25%, which would also positively impact timber pricing in regions like Idaho, where prices are tied to lumber trends.

Additionally, PotlatchDeltic is expected to see improved lumber margins due to its favorable cost structure, particularly following the expansion of its Waldo mill, which is projected to add about 85 million board feet of capacity. This gives the company a stronger competitive position in the lumber market moving forward.