Weyerhaeuser Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Weyerhaeuser (NYSE:WY) will unveil its latest earnings tomorrow, Friday, January 25, 2013. 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 net income of 19 cents per share, a rise of 35.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 14 cents. Between one and three months ago, the average estimate moved up. It has risen from 16 cents during the last month. For the year, analysts are projecting profit of 51 cents per share, a rise of 54.5% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the third quarter, it reported net income of 22 cents per share against a mean estimate of profit of 17 cents per share. In the second quarter, it missed forecasts by one cent.

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A Look Back: In the third quarter, profit fell 25.5% to $117 million (22 cents a share) from $157 million (29 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 12.9% to $1.77 billion from $1.57 billion.

Here’s how Weyerhaeuser traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Stock Price Performance: Between November 20, 2012 and January 18, 2013, the stock price had risen $4.37 (16.6%), from $26.26 to $30.63. The stock price saw one of its best stretches over the last year between January 3, 2013 and January 11, 2013, when shares rose for seven straight days, increasing 5.7% (+$1.66) over that span. It saw one of its worst periods between July 16, 2012 and July 25, 2012 when shares fell for eight straight days, dropping 3.7% (-87 cents) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 11.1% in revenue from the year-earlier quarter to $1.8 billion.

Key Stats:

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 740% in the second quarter before dropping in the third quarter.

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 11.4% in the second quarter before climbing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.53 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 1.81 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 12% to $1.25 billion while assets decreased 5.4% to $1.92 billion.

Analyst Ratings: With five analysts rating the stock a sell, three rating it as a buy and seven 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)