Weyerhaeuser’s Quarterly Earnings Preview: What You Need to Know

Valued at a market cap of $20.4 billion, Weyerhaeuser Company (WY) is one of the largest private owners of timberlands globally, with approximately 11 million acres in the U.S. and additional lands managed in Canada. The Seattle, Washington-based company operates sustainably across timber, real estate, and manufacturing, offering products like lumber, plywood, and hardwood, as well as minerals, oil, and gas. WY is set to release its fiscal Q4 earnings results after the market closes on Thursday, Jan. 30.

For Q4 earnings results, analysts forecast the timber and paper products company to post a profit of $0.07 per share, a decline of 56.3% from $0.16 per share in the same quarter last year. The company has surpassed Wall Street’s bottom-line estimates in three of the past four quarters while missing on another occasion. In Q3, WY exceeded the consensus EPS estimate by a significant 150% margin.

For fiscal 2024, analysts expect WY to report EPS of $0.49, a decrease of nearly 52% from $1.02 in fiscal 2023. However, for fiscal 2025, analysts anticipate a significant rebound, with EPS projected to grow 69.4% year-over-year to $0.83.

Over the past 52 weeks, WY has dropped 19.1%, underperforming the broader S&P 500 Index’s ($SPX) 23.4% rise and the Real Estate Select Sector SPDR Fund’s (XLRE)  marginal rise  over the same period. 

Despite reporting stronger-than-expected Q3 adjusted earnings of $0.05 per share on Oct. 24, shares of WY fell over 1% the next day due to a miss on net sales, which came in at $1.7 billion. Additionally, lower fee harvest volumes decreased by 16.9%, and increased raw material costs contributed to investor concerns. The company’s guidance for weaker Q4 earnings, with EBITDA projected at $236 million – a significant decline from the year-ago period, further added to investor uncertainty. Market expectations were also dampened by reduced sales realizations and the impact of rising operating costs across multiple segments.

Analysts’ consensus rating on Weyerhaeuser stock is moderately optimistic with a “Moderate Buy” rating overall. Out of 11 analysts covering the stock, opinions include six “Strong Buys,” two “Moderate Buys,” and three “Holds.” This configuration is slightly more bullish than three months ago, with five “Strong Buy” ratings. As of writing, WY is trading below the average analyst price target of $36.10.  

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart

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