Weyerhaeuser Company (WY) is one of the leading U.S. forest product companies, offering logs, hardwood lumber, timber, poles and plywood, as well as minerals, oil, gas, seeds and seedlings to a diversified client base in the U.S., Canada, Japan, Europe and other regions. The company stands to benefit from the gradual recovery in the U.S. housing market. This Washington-based company has $15.8 billion market capitalization.
However, Weyerhaeuser’s businesses are directly influenced by the U.S. housing market. In second-quarter 2015, new residential construction grew 22.1% in April, but fell nearly 11.1% in May. Operating conditions improved in July, with housing starts rising 9.8%. Overall, prospects for the U.S. market look solid for the remaining quarters of 2015. Nevertheless, the easy availability of credits for home buying as well as buyer’s affordability to match pace with the rising prices remains a matter of concern. Investors are eagerly waiting for the company’s latest earnings report.
Weyerhaeuser reported better-than-expected results in two out of four trailing quarter, while missed the estimates in the rest. Average earnings surprise stands at a negative 1.39%. Moreover, earnings estimate on the company has decreased over the last few days.
Currently, Weyerhaeuser has a Zacks Rank #4 (Sell), but that could definitely change after the release of its upcoming earnings report. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Weyerhaeuser reported earnings from continuing operations, before special items, of 26 cents per share in second-quarter 2015. The bottom line result was above the Zacks Consensus Estimate of 20 cents per share.
Revenue: Revenues surpassed. Weyerhaeuser generated revenues of $1,807 million, above the Zacks Consensus Estimate of $1,771 million.
Key Stats to Note: For third-quarter 2015, the company expects sequentially lower earnings for the Timberlands segment, while anticipates earnings for the Wood Products and Cellulose Fibers segments to be higher over the previous quarter.
Stock Price: Weyerhaeuser shares were up almost 0.53% ahead of the report while declined 1.11% in the pre-market trading session.
Check back our full write up on this WY earnings report later!
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