Weyerhaeuser Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Weyerhaeuser (NYSE:WY) will unveil its latest earnings on Friday, October 26, 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 analyst estimate is for net income of 17 cents per share, a rise of 41.7% from the company’s actual earnings for the year-ago quarter. 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 43 cents per share, a rise of 30.3% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported net income of 9 cents per share versus a mean estimate of profit of 10 cents per share. In the first quarter, the company beat estimates by 2 cents.

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A Look Back: In the second quarter, profit rose 740% to $84 million (16 cents a share) from $10 million (2 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 11.4% to $1.79 billion from $1.61 billion.

Stock Price Performance: Between July 27, 2012 and October 22, 2012, the stock price rose $4.64 (19.7%), from $23.59 to $28.23. 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 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: On average, analysts predict $1.79 billion in revenue this quarter, a rise of 14% from the year-ago quarter. Analysts are forecasting total revenue of $6.75 billion for the year, a rise of 6% from last year’s revenue of $6.37 billion.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 5.7% in the third quarter of the last fiscal year, 2.9% in the fourth quarter of the last fiscal year and 5.3% in the first quarter before climbing in the second quarter.

After some good news last quarter, the company is trying to build on the result with this upcoming earnings announcement. Net income fell in the third quarter of the last fiscal year, the fourth quarter of the last fiscal year and the first quarter before snapping that run with a profit increase in the second quarter.

Analyst Ratings: With four 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.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.81 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 1.85 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.1% to $1.12 billion while assets rose 4.4% to $2.02 billion.

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

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