Weyerhaeuser Co.Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Weyerhaeuser Company (NYSE:WY) will unveil its latest earnings on Friday, July 29, 2011. Weyerhaeuser Company is a forest products company which mainly grows and harvests trees, builds homes and makes a range of forest products.

Weyerhaeuser Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 9 cents per share, a decline of 55% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 18 cents. Between one and three months ago, the average estimate moved down and dropped from 10 cents during the last month. For the year, analysts are projecting net income of 45 cents per share, a decline of 10% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of 10 cents per share versus a mean estimate of net income of 14 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 5 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.75 billion in revenue this quarter, a decline of 2.8% from the year ago quarter. Analysts are forecasting total revenue of $6.76 billion for the year, a rise of 3.2% from last year’s revenue of $6.55 billion.

Analyst Ratings: Analysts are bearish on Weyerhaeuser Company as six analysts rate it as a sell, four rate it as a buy and five rate it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 18.4%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 29.8% from the year earlier quarter.

The company’s gross margin shrank by 4.3 percentage points in the in the first quarter. Revenue rose 11.2% while cost of sales rose 17.3% to $1.32 billion from a year earlier.

Competitors to Watch: Universal Forest Products, Inc. (NASDAQ:UFPI), Deltic Timber Corporation (NYSE:DEL), Canfor Corporation (AMEX:CFP), Rougier SA (NYSE:RGR).

Stock Price Performance: During April 28, 2011 to July 25, 2011, the stock price had fallen $2.55 (-10.7%) from $23.83 to $21.28. The stock price saw one of its best stretches over the last year between October 28, 2010 and November 8, 2010 when shares rose for eight-straight days, rising 13.8% (+$2.13) over that span. It saw one of its worst periods between April 1, 2011 and April 13, 2011 when shares fell for nine-straight days, falling 10.8% (-$2.69) over that span. Shares are up $2.59 (+13.9%) year to date.

(Source: Xignite Financials)

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