Weyerhaeuser Earnings: Revenue Growth BREAKS STREAK of Four Straight Declines, Profit INCREASES

S&P 500 (NYSE:SPY) component Weyerhaeuser Co. (NYSE:WY) reported its results for the second quarter. Weyerhaeuser is a forest products company, which mainly grows and harvests trees, builds homes, and makes a range of forest products.

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Weyerhaeuser Co. Earnings Cheat Sheet

Results: Net income for Weyerhaeuser Co. rose to $84 million (16 cents per share) vs. $10 million (2 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Rose 11.4% to $1.79 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Weyerhaeuser Co. reported adjusted net income of 9 cents per share. By that measure, the company fell short of mean estimate of 10 cents per share. It beat the average revenue estimate of $1.75 billion.

Quoting Management: “We are seeing signs of a rebound in the U.S. housing market, and as markets strengthen, the operational improvements within our Wood Products business are yielding clear results,” said Dan Fulton, president and chief executive officer. “Our ongoing work to improve performance across all businesses is positioning us to capture the full benefit of the market recovery as it unfolds.”

Key Stats:

After four consecutive quarters of year-over-year profit drops, the company reported a profit increase last quarter. In the first quarter, net income fell 58.6% from the year earlier, while the figure fell 62% in the fourth quarter of the last fiscal year, 85.9% in the third quarter of the last fiscal year and 28.6% in the second quarter of the last fiscal year.

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the second quarter of the last fiscal year, which saw a 10.8% decrease.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by 2 cents, and in the fourth quarter of the last fiscal year, it was ahead by 8 cents.

Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from 15 cents per share to 14 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At 41 cents per share, the average estimate for the fiscal year has risen from 39 cents sixty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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