It has been about a month since the last earnings report for Rayonier (RYN). Shares have added about 4.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Rayonier due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Rayonier Q2 Earnings and Revenues Miss Estimates

Rayonier reported second-quarter 2024 pro-forma net income per share of 2 cents, down from 5 cents reported in the year-ago quarter. This also missed the Zacks Consensus Estimate of 14 cents.

Results reflected lower harvest volumes in its Timber segments amid the choppiness in the market.

Total revenues came in at $173.6 million, which lagged the Zacks Consensus Estimate of $224.9 million. On a year-over-year basis, the figure decreased 16.9%. Adjusted EBITDA came in at $55.7 million, down from $69.2 million in the prior-year period.

According to Mark McHugh, president and CEO of Rayonier, “Market conditions remained challenging during the second quarter, translating to a 20% decline in Adjusted EBITDA versus the prior-year quarter.” The CEO also noted that “Much of this decline was attributable to lower harvest volumes in our Timber segments, reflecting generally softer demand and the deferral of some harvest activity.”

Segmental Performance

In the second quarter, the pro-forma operating income in the company’s Southern Timber segment came in at $17.1 million, which decreased 21.2% from the prior-year quarter. The decrease was due to lower volumes and higher costs, partially offset by lower depletion rates and higher net stumpage realizations.

The Pacific Northwest Timber segment reported a pro-forma operating loss of $1.5 million compared with a loss of $2.4 million a year ago. This was driven by improved net stumpage realizations and lower depletion rates, partly offset by lower non-timber income, higher costs and lower volumes.

The New Zealand Timber segment recorded pro-forma operating income of $2.9 million, up from the year-earlier quarter’s $2.4 million. This rise was due to higher carbon credit income, favorable foreign exchange impacts, lower costs and lower depletion rates, partially offset by lower net stumpage realizations and lower volumes.

Real Estate’s pro-forma operating income was $5.8 million against the year-ago period’s income of $8.6 million. This reflects lower weighted-average prices, partially offset by significantly higher acres sold and favorable deferred revenue adjustments.