LandBridge (NYSE:LB) Releases Quarterly Earnings Results, Misses Expectations By $0.44 EPS

Key Points

• Reported $0.11 EPS for the quarter, missing estimates by $0.44 (consensus $0.55) and posting $51.01 million in revenue versus $58.72 million expected; net margin was 15.13% and ROE 4.31%.
• The board approved a $50 million buyback and the company raised its quarterly dividend to $0.12 (annualized $0.48, 0.7% yield; payout ratio 51.06%).
• Shares fell to $65.83 after the release; the stock trades at a PE of 70.03 with a $5.07 billion market cap, analysts are mixed (average "Hold", $76 target), and insiders have recently sold stock while still owning 70.42%.

LandBridge (NYSE:LB - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.55 by ($0.44), FiscalAI reports. LandBridge had a net margin of 15.13% and a return on equity of 4.31%. The business had revenue of $51.01 million during the quarter, compared to analyst estimates of $58.72 million.

LandBridge Stock Performance

LB traded down $0.32 during trading on Wednesday, hitting $65.83. The stock had a trading volume of 377,457 shares, compared to its average volume of 461,677. The firm has a market cap of $5.07 billion, a PE ratio of 70.03 and a beta of 0.14. LandBridge has a 12 month low of $43.75 and a 12 month high of $87.60. The company has a current ratio of 4.87, a quick ratio of 4.87 and a debt-to-equity ratio of 0.70. The company has a 50 day simple moving average of $70.18 and a 200-day simple moving average of $62.35.

LandBridge Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 19th. Investors of record on Thursday, March 5th were issued a $0.12 dividend. This is a boost from LandBridge's previous quarterly dividend of $0.10. The ex-dividend date was Thursday, March 5th. This represents a $0.48 annualized dividend and a yield of 0.7%. LandBridge's payout ratio is 51.06%.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Zacks Research lowered shares of LandBridge from a "hold" rating to a "strong sell" rating in a research note on Tuesday, April 28th. The Goldman Sachs Group lifted their price objective on shares of LandBridge from $69.00 to $84.00 and gave the company a "buy" rating in a research note on Friday, March 13th. Wells Fargo & Company lifted their price objective on shares of LandBridge from $90.00 to $92.00 and gave the company an "overweight" rating in a research note on Wednesday, March 18th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of LandBridge in a research note on Wednesday, April 8th. Finally, Barclays lifted their price objective on shares of LandBridge from $57.00 to $75.00 and gave the company an "equal weight" rating in a research note on Friday, February 27th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $76.00.

Insider Buying and Selling

In related news, Director Charles L. Watson sold 30,680 shares of LandBridge stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $74.07, for a total value of $2,272,467.60. Following the transaction, the director owned 86,920 shares in the company, valued at $6,438,164.40. This trade represents a 26.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. In the last quarter, insiders have sold 53,350 shares of company stock valued at $3,974,555. Company insiders own 70.42% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in LB. DF Dent & Co. Inc. bought a new position in shares of LandBridge during the 4th quarter worth about $21,506,000. Goldman Sachs Group Inc. increased its holdings in shares of LandBridge by 1,957.2% during the 4th quarter. Goldman Sachs Group Inc. now owns 214,771 shares of the company's stock worth $10,522,000 after purchasing an additional 204,331 shares during the period. UBS Group AG increased its holdings in shares of LandBridge by 88.6% during the 3rd quarter. UBS Group AG now owns 426,156 shares of the company's stock worth $22,735,000 after purchasing an additional 200,231 shares during the period. Amundi bought a new position in shares of LandBridge during the 4th quarter worth about $9,223,000. Finally, Marshall Wace LLP bought a new position in shares of LandBridge during the 4th quarter worth about $6,981,000.

LandBridge declared that its Board of Directors has approved a stock repurchase program on Wednesday, February 25th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

About LandBridge

LandBridge Company LLC owns and manages land and resources to support and enhance oil and natural gas development in the United States. It owns surface acres in and around the Delaware Basin in Texas and New Mexico. The company holds a portfolio of oil and gas royalties. It also sells brackish water and other surface composite materials. The company was founded in 2021 and is based in Houston, Texas. LandBridge Company LLC operates as a subsidiary of LandBridge Holdings LLC.

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