The Profits of Weyerhaeuser Co. (NYSE: WY) Go Up, Forecast For 4Q Seems Weak


The third quarter’s financial figures of Weyerhaeuser Co. (NYSE: WY) were made public before the stock market opened on October 31, 2014. REIT, the real estate investment trust of wood precuts, posted its diluted EPS (earnings per share) for the company at $0.33 and revenues at $1.92 billion. It is important to note here that the company had reported an EPS of $0.27 on total revenues of $2.18 during the same fiscal quarter a year back.

The actual figures were in line with the estimates of Thomson Reuters: the research company had estimated the EPS to be around $0.30 with total revenues of $1.97. The adjusted earnings excluded around $966 million in expenses concerning operations related to the sale of company’s real estate branch. The adjusted figures also did not take into account another $9 million which was spent on special items. If these benefits would have been added to the reports, the EPS would have been around $2.15 for the respective quarter.

The company also predicted an outlook for its fourth fiscal quarter. While doing so, the management of Weyerhaeuser Co. (NYSE: WY) said that chances are that the timberland branch of the company will post lower numbers for the fourth quarter, mainly because of the reduced earnings from its non-strategic plans.

The earnings of the company were reported to be $34 million short sequentially for the third fiscal quarter whereas the sale figures reduced from $397 million to $364 million.

The company also expects the financial numbers of its Wood Products division to fall during the next quarter. It is pertinent to note here that the earnings in the wood product segment increased by 3 million during the current quarter and reached to a total of $105 million.

The company’s 2Q revenues were recorded to be around $1.08 billion; the revenues fell down to $1.05 billion for the 3Q. Second-quarter revenues totaled $1.08 billion and third-quarter revenues fell to $1.05 billion. The forecast for the 4Q earnings is very weak, mainly because of the seasonal decline in the sales volume in all the product segments.

The earnings in the cellulose fibers segment are expected to increase significantly in the fourth quarter, mainly because of the decreased maintenance expenses.  Pretax earnings in the cellulose segment were recorded to be around $59 million for 3Q; the figures were short $32 million sequentially.

The estimated EPS for the fourth quarter is recorded to be around $0.34 with total revenues of $1.93 billion. As for the annual EPS and revenues, the figures are estimated to cross $1.33 and $7.81 billion respectively.

Coming to the stock prices of the company, Weyerhaeuser Co. (NYSE: WY), on the last trading day, October 31, 2014, started its stocks at a price of $33.66 and closed at a price of $33.86, after hitting the highest figures of $34.04. The intraday range for the company’s stocks was recorded to be around $33.03 to $34.04.

Weyerhaeuser Co. (NYSE: WY) has a total market capitalization of $17.72 billion and a P/E (price to earnings) ratio of 31.61. As far as the dividend yield of the company’s stocks is concerned, the figures are reported to be around 3.43 percent.