ALEX Reports Increased Income and EPS Amid Outlook Decline

ALEX sees growth with Q4 earnings increasing to $12.4M. However, 2025 projections indicate a drop in net income per share. Investors should weigh current gains against future expectations cautiously.

Date: 28-02-2025

AI Rating: 6

**Earnings and Net Income**: Alexander & Baldwin, Inc. reported a net income of $12.4 million in Q4 2024, a significant recovery from a net loss of $3.5 million in the same quarter last year, indicating a strong turnaround in performance. This positive shift in net income is likely to bolster investor confidence in the company's operational capabilities.

**Earnings Per Share (EPS)**: The earnings per share from continuing operations improved to $0.17 from $0.12 in the prior-year quarter. This growth reflects the company's ability to enhance profitability on a per-share basis, which is typically a positive indicator for stock prices as it shows that the company is generating more earnings for its shareholders.

**Funds From Operations (FFO)**: Funds from Operations rose to $22 million from $19.8 million, further showcasing improving operational performance. The adjusted FFO also increased from $12.2 million to $14.2 million year-over-year. Higher FFO can be a compelling positive for real estate investment trusts, as it is a key metric for assessing their financial health.

**Future Outlook**: The company's guidance for 2025, however, presents a more cautious tone. It forecasts net income per share to be between $0.64 and $0.71, down from $0.83 in 2024, and expects Funds From Operations per share to decline from $1.37 to a range of $1.13 to $1.20. This forward-looking decline may temper enthusiasm among investors, as it indicates potential challenges ahead despite the current positive performance.

In summary, while the recent quarter's performance shows strong recovery and positive growth in earnings and FFO, the outlook for 2025 suggests that the company may face headwinds that could impact stock prices. Investors should carefully consider these factors when making decisions regarding ALEX shares.

Stocks: ALEX