PotlatchDeltic to Report Q4 Earnings: What's in Store for the Stock?

Core Viewpoint - PotlatchDeltic Corporation (PCH) is expected to report its fourth-quarter 2024 results on January 27, with mixed performance indicators suggesting potential challenges and opportunities in its financial results [1]. Financial Performance - In the last quarter, adjusted earnings and revenues exceeded the Zacks Consensus Estimate by 200% and 6.6%, respectively, but showed year-over-year declines of 71.4% and 4.1% [2]. - The Zacks Consensus Estimate for adjusted earnings per share has improved from a loss of 5 cents to a break-even point over the past 30 days, aligning with the year-ago quarter's figure [3]. - Revenue estimates are projected at $241.2 million, reflecting a 5.2$98 million and $154 million, respectively, showing year-over-year growth, while the Real Estate segment is expected to decline to$20 million from $27.91 million [6]. Margin Analysis - The bottom-line performance is likely to be affected by inflationary pressures and rising costs, particularly in selling, general, and administrative expenses due to professional service fees and employee-related costs [7]. - Increased costs associated with rural real estate sales and higher log and haul costs are also expected to contribute to margin pressures [7]. - However, lower raw material, production, and shipping costs at the Waldo, AR sawmill, along with operational improvements, may help offset some of the negative impacts on margins [8]. Earnings Prediction - The current model does not predict a definitive earnings beat for PotlatchDeltic, as the company lacks a positive Earnings ESP and a favorable Zacks Rank [9]. - PCH has an Earnings ESP of 0.00% and holds a Zacks Rank of 3, indicating a neutral outlook [10].