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 $16.5 billion market capitalization.
However, Weyerhaeuser’s businesses are directly influenced by the U.S. housing market. In first-quarter 2015, average housing starts in the U.S. declined 8.8% sequentially, with strength seen in January and March more than offset by weakness suffered in February. Also, sales of new single-family houses declined 11.4% from the previous month. Such negatives might have affected demand for its products in the quarter. Also, the company faces headwinds from adverse foreign currency translation as well as stiff market competition. Investors are eagerly waiting for the company’s latest earnings report.
Weyerhaeuser’s earnings track record has been quite satisfactory in the trailing four quarters. Better-than-expected results in three of four quarters led to an average earnings surprise of +9.28%. However, earnings estimate on the company has decreased over the last few days.
Currently, Weyerhaeuser has a Zacks Rank #5 (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 of 19 cents per share in first-quarter 2015. The bottom line result came below the Zacks Consensus Estimate of 27 cents per share.
Revenue: Revenues missed. Weyerhaeuser generated revenues of $1,721 million, below the Zacks Consensus Estimate of $1,773 million.
Key Stats to Note: The company incurred 4 cents per share loss due to adverse foreign currency movements. For second-quarter 2015, the company expects sequentially higher earnings for the Wood Products segment while sequentially lower earnings for the Cellulose Fibers and Timberlands segments.
Stock Price: Weyerhaeuser shares were down almost 0.69% ahead of the report while inched up 0.13% in the pre-market trading session.
Check back our full write up on this WY earnings report later!
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