Earnings Preview: PotlatchDeltic

PotlatchDeltic PCH is preparing to release its quarterly earnings on Monday, 2024-10-28. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect PotlatchDeltic to report an earnings per share (EPS) of $-0.06.

Anticipation surrounds PotlatchDeltic's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

Last quarter the company beat EPS by $0.02, which was followed by a 4.2% increase in the share price the next day.

Here's a look at PotlatchDeltic's past performance and the resulting price change:

Market Performance of PotlatchDeltic's Stock

Shares of PotlatchDeltic were trading at $42.5 as of October 24. Over the last 52-week period, shares are down 0.22%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analysts' Take on PotlatchDeltic

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on PotlatchDeltic.

Analysts have provided PotlatchDeltic with 3 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $48.67, suggesting a potential 14.52% upside.

Peer Ratings Comparison

In this comparison, we explore the analyst ratings and average 1-year price targets of National Storage, EPR Props and Outfront Media, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for National Storage, with an average 1-year price target of $43.31, indicating a potential 1.91% upside.
• For EPR Props, analysts project an Neutral trajectory, with an average 1-year price target of $48.64, indicating a potential 14.45% upside.
• For Outfront Media, analysts project an Outperform trajectory, with an average 1-year price target of $19.33, indicating a potential 54.52% downside.

Insights: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for National Storage, EPR Props and Outfront Media, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

PotlatchDeltic ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Unveiling the Story Behind PotlatchDeltic

PotlatchDeltic Corp is a REIT that owns and manages forestland in Alabama, Arkansas, Idaho, Minnesota, and Mississippi. Potlach operates in three segments. The timberlands segment covers the planting and harvesting of trees, as well as the construction and maintenance of roads. The wood products segment manufactures and distributes lumber, plywood, and other wood products. The real estate segment covers the sales generated from company-owned timberlands, as well as commercial and residential properties. The timberlands and the wood product segments combined drive the majority of the company's revenue.

Understanding the Numbers: PotlatchDeltic's Finances

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: PotlatchDeltic's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 30.3%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Real Estate sector.

Net Margin: PotlatchDeltic's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 4.27%, the company may face hurdles in effective cost management.

Return on Equity (ROE): PotlatchDeltic's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.64%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): PotlatchDeltic's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.4%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: PotlatchDeltic's debt-to-equity ratio is below the industry average. With a ratio of 0.49, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for PotlatchDeltic visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.