With a market cap of $23.9 billion, Weyerhaeuser Company (WY) operates in the forest products and real estate investment trust (REIT) sector. As one of the largest private timberland owners in the world, it manages over 11 million acres in the U.S. and specializes in sustainable forestry and the production of wood-based products for global markets. The Seattle, Washington-based company is expected to announce its fiscal Q3 earnings results after the market closes on Thursday, Oct. 24.
Ahead of this event, analysts expect the timber and paper products company to report a profit of $0.05 per share, down 84.9% from the previous year's $0.33 per share. The company has surpassed Wall Street’s EPS estimates in three of the past four quarters while missing on one other occasion. The company reported an adjusted EPS of $0.21 in the most recent quarter, missing the consensus estimate by 4.6% due to low demand for its products amid a weakness in the housing market.
For fiscal 2024, analysts expect WY to report EPS of $0.51, down 50% from $1.02 in fiscal 2023. However, in fiscal 2025, EPS is projected to grow 68.6% year-over-year to $0.86.
WY has risen 11% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 33.5% gain and the Real Estate Select Sector SPDR Fund's (XLRE) 29.1% increase over the same period.
Despite missing Q2 earnings and revenue estimates on Jul. 25, Weyerhaeuser's stock rose 4.3% the next day due to strong performance across its business segments, including a quarter-over-quarter increase in adjusted EBITDA. Investors were encouraged by the company's $244 million acquisition of 84,300 acres of high-yield timberlands in Alabama, signaling a strategic move to enhance long-term cash flow and portfolio strength. Additionally, management's confidence in navigating lumber market challenges and sustaining profitability helped bolster investor sentiment.
Overall, analysts' consensus view on Weyerhaeuser stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 11 analysts covering the stock, five give a "Strong Buy," one has a "Moderate Buy" rating, and five give a "Hold" rating. The average analyst price target for WY is $36.11, suggesting a potential upside of only 9.1% from current levels.
On the date of publication, Sohini Mondal 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.
