S&P 500 (NYSE:SPY) component Weyerhaeuser Co. (NYSE:WY) reported its results for the third 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 the building products-wood fell to $84 million (16 cents per share) vs. $157 million (29 cents per share) a year earlier. This is a decline of 46.5% from the year-earlier quarter.
Revenue: Rose 14.3% to $1.79 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Weyerhaeuser Co. fell short of the mean analyst estimate of 17 cents per share. It beat the average revenue estimate of $1.75 billion.
Quoting Management: “This month the Board of Directors increased our quarterly dividend by 13 percent to 17 cents per share,” said Dan Fulton, president and chief executive officer. “As our third quarter performance indicates, the operational improvements within our businesses are demonstrating clear results, and we are capitalizing on an improving housing market to the benefit of our shareholders.”
The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by one cent with net income of 9 cents versus a mean estimate of net income of 10 cents per share.
Net income has increased 97.4% year-over-year on average across the last five quarters. The biggest gain came in the second, when income climbed 740% from the year-earlier quarter.
The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 11.4% to $1.79 billion from the year-earlier quarter.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 12 cents a share to 14 cents over the last sixty days. For the fiscal year, the average estimate has moved up from 38 cents a share to 43 cents over the last sixty days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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