Weyerhaeuser Company Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Weyerhaeuser Company (NYSE:WY) will unveil its latest earnings on Friday, October 28, 2011. Weyerhaeuser 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 net income of 11 cents per share, a decline of 56% 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 19 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 12 cents during the last month. Analysts are projecting profit to rise by 40% versus last year to 30 cents.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the second quarter, it missed the mark by 3 cents as a result of reporting profit of 6 cents against an estimate of net income of 9 cents per share. In the first quarter, the company fell short of forecasts by 4 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.68 billion in revenue this quarter, a rise of 1.2% from the year ago quarter. Analysts are forecasting total revenue of $6.61 billion for the year, a rise of 0.9% from last year’s revenue of $6.55 billion.

Analyst Ratings: Analysts seem relatively indifferent about Weyerhaeuser Company with seven of 13 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit fell 28.6% to $10 million (2 cents a share) from $14 million (3 cents a share) the year earlier, missing analyst expectations. Revenue fell 10.8% to $1.61 billion from $1.8 billion.

Key Stats:

A year-over-year revenue decrease in the second quarter snapped a streak of three consecutive quarters of revenue increases. Revenue rose 11.2%in the first quarter, 14.4% in the fourth quarter of the last fiscal year and 18.3% in the third quarter of the last fiscal year.

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 July 29, 2011 to October 24, 2011, the stock price had fallen $2.28 (-11.5%) from $19.82 to $17.54. 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% (+$2.11) 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% (-$2.67) over that span. Shares are down 99 cents (-5.3%) year to date.

(Source: Xignite Financials)

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