Weyerhaeuser Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Weyerhaeuser (NYSE:WY) will unveil its latest earnings on Friday, July 27, 2012. Weyerhaeuser is a forest products company, which mainly grows and harvests trees, builds homes, and makes a range of forest products.

Weyerhaeuser Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 10 cents per share, a rise of 66.7% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from 9 cents during the last month. For the year, analysts are projecting net income of 41 cents per share, a rise of 24.2% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 2 cents per share versus a mean estimate of 0 cents per share.

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A Look Back: In the first quarter, profit fell 58.6% to $41 million (8 cents a share) from $99 million (18 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 5.3% to $1.49 billion from $1.58 billion.

Stock Price Performance: Between May 24, 2012 and July 23, 2012, the stock price had risen $3.14 (15.8%), from $19.91 to $23.05. The stock price saw one of its best stretches over the last year between January 9, 2012 and January 19, 2012, when shares rose for eight straight days, increasing 11.8% (+$2.22) over that span. It saw one of its worst periods between July 22, 2011 and August 2, 2011 when shares fell for eight straight days, dropping 15% (-$3.33) over that span.

Wall St. Revenue Expectations: On average, analysts predict $1.75 billion in revenue this quarter, a rise of 8.7% from the year-ago quarter. Analysts are forecasting total revenue of $6.62 billion for the year, a rise of 3.9% from last year’s revenue of $6.37 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 10.8% in the second quarter of the last fiscal year, 5.7% in third quarter of the last fiscal year and 2.9% in the fourth quarter of the last fiscal year and then fell again in the first quarter.

Heading into this earnings announcement, net income has dropped 58.8% on average for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.85 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.19 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 11.2% to $1.05 billion while assets decreased 6.1% to $1.94 billion.

Analyst Ratings: With five analysts rating the stock a sell, three rating it as a buy and six rating it as a hold, there are indications of a bearish outlook.

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

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