CatchMark (CTT) Fourth Quarter Earnings and Revenue Lag Estimates


VSatchMark (CTT) exited with quarterly earnings of $0.70 per share, missing Zacks consensus estimate of $0.72 per share. That compares to a loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents a profit surprise of -2.78%. A quarter ago, this Timberlands real estate investment trust was expected to post a profit of $0.37 per share when it actually produced a profit of $0.48, offering a surprise of 29, 73%.

In the past four quarters, the company has exceeded consensus EPS estimates three times.

CatchMark, which is part of the Zacks Building Products – Wood industry, posted revenue of $20.46 million for the quarter ended December 2021, missing Zacks’ consensus estimate by 12.22%. That compares to revenues of $30.95 million a year ago. The company has exceeded consensus revenue estimates twice in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

CatchMark shares have lost about 5.9% year-to-date compared to a -3.8% decline for the S&P 500.

What’s next for CatchMark?

While CatchMark has underperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?

There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Before this publication of the results, the trend of revisions of the estimates for CatchMark: mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.03 on $22.15 million in revenue for the upcoming quarter and -$0.21 on $84.27 million in revenue for the current fiscal year .

Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, Building Products – Wood is currently in the top 19% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Another stock in the same sector, Floor & D?cor (FND), has yet to report its results for the quarter ending December 2021. The results are expected to be released on February 24.

This company is expected to post quarterly earnings of $0.44 per share in its next report, representing a year-over-year change of -6.4%. The consensus EPS estimate for the quarter has been revised down 0.7% in the past 30 days from the current level.

Floor & Decor revenue is expected to be $908.79 million, up 25.6% from the prior year quarter.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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