Why St. Joe Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of real estate development company St. Joe (NYS: JOE) jumped as much as 17% earlier in the trading session, after reporting upbeat third-quarter earnings results.
So what: For the quarter, the company reported a big jump in revenue, to $55.9 million, from $26.7 million in the year-ago quarter, and a profit of $0.17 per share. Both figures crushed Wall Street's expectations. Of the $29.2 million increase in revenue, $18.3 million came from two rural land asset sales. More importantly, revenue at the company's clubs and resorts grew 9%, and the company prepaid some of its debt.
Now what: Still not a personal fan of St. Joe, even though the real estate market appears to have found some footing, but it is making tangible steps in the right direction. Debt is heading lower, resort revenue is moving higher, and it's disposing of assets for solid gains. A few more quarters like this one, and I may have to take a closer look at St. Joe again.
Craving more input? Start by adding St. Joe to your free and personalized Watchlist, so you can keep up on the latest news with the company.
The article Why St. Joe Shares Popped originally appeared on Fool.com.Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.