Seattle-based Weyerhaeuser Company (WY) is one of the world's largest owners of timberlands. With a market cap of $21.1 billion, the company has control over approximately 11 million acres of timberlands in the U.S. and manages additional timberlands under long-term licenses in Canada. It is expected to announce its Q2 earnings after the market closes on Thursday, July 25.
Ahead of the event, analysts expect Weyerhaeuser to report a profit of $0.28 per share, down 12.5% from $0.32 per share reported in the year-ago quarter. The company surpassed or met Wall Street’s EPS projections in each of the past four quarters. Its EPS for the last reported quarter declined by 23.8% annually to $0.16 but exceeded the consensus estimates by 6.7%.
Looking ahead to fiscal 2024, analysts expect Weyerhaeuser to report an EPS of $0.99, down 2.9% from $1.02 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 17.2% annually to $1.16.
WY stock is down 14.2% over the past 52 weeks, substantially underperforming the S&P 500 Index’s ($SPX) 25.8% gains and the S&P 500 Real Estate Sector SPDR’s (XLRE) 3.7% returns over the same time frame.
Weyerhaeuser’s financial performance is closely linked to the housing market and construction activities. The recent slowdown in the housing market, high interest rates, and challenging macroeconomic conditions have led to decreased demand for timber products, negatively impacting the company's financial performance. As a result, the company reported a 4.5% decrease in sales and 24.5% decrease in net earnings in Q1. After Weyerhaeuser's Q1 earnings report on April 25, its stock dipped 1.3% in the subsequent trading session.
Despite the challenges, Weyerhaeuser has shown operational resilience and repurchased 1,472,369 common shares for approximately $49 million in Q1, demonstrating its commitment toward shareholders.
The consensus opinion on Weyerhaeuser stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 10 analysts covering the stock, five suggest a “Strong Buy,” one advises a “Moderate Buy," and the remaining four analysts recommend a “Hold” rating.
The average target price for Weyerhaeuser is $37.67, indicating a potential upside of 30.1% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
