Earnings Alerts

Weyerhaeuser Co (WY) Earnings: 1Q Adjusted EPS Falls Short of Estimates Despite Strong Timberlands Performance

  • Weyerhaeuser’s 1Q adjusted earnings per share (EPS) came in at 11 cents, missing the estimate of 12 cents and down from 16 cents year-over-year (y/y).
  • The company reported net sales of $1.76 billion, slightly below the expected $1.77 billion, marking a 1.8% decrease y/y.
  • Timberlands net sales increased by 2.5% y/y to $534 million, surpassing the estimate of $508 million.
  • Net sales for Real Estate, Energy & Natural Resources came in at $94 million, which is a 12% decline y/y, but above the $89.5 million estimated.
  • Wood Products achieved net sales of $1.29 billion, reflecting a 1.2% reduction y/y, close to the $1.3 billion estimate.
  • Adjusted EBITDA totaled $328 million, a decrease of 6.8% y/y, but exceeded the forecast of $311.4 million.
  • The Timberlands segment reported adjusted EBITDA of $167 million, a 16% increase y/y, outperforming the estimate of $152.7 million.
  • Adjusted EBITDA for Real Estate, Energy & Natural Resources was $82 million, down 13% y/y, yet above the predicted $76.3 million.
  • Wood Products adjusted EBITDA was $161 million, representing a 13% decline y/y, which still beat the estimate of $152.6 million.
  • Capital expenditure rose 18% y/y to $93 million.
  • Analyst recommendations show 11 buy ratings, 3 holds, and 0 sells for Weyerhaeuser stock.

A look at Weyerhaeuser Co Smart Scores

FactorScoreMagnitude
Value3
Dividend4
Growth2
Resilience3
Momentum4
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Weyerhaeuser Company, an integrated forest products company with a global presence, has been assessed using the Smartkarma Smart Scores. These scores provide an overall outlook for the company across different factors. Looking at the scores, Weyerhaeuser has received a moderate rating for its value potential, showing promise but with room for improvement. In terms of dividends, the company has been rated positively, indicating a strong performance in this area. However, the growth score is on the lower end, suggesting slower growth prospects. Weyerhaeuser has also been deemed resilient, reflecting its ability to weather uncertainties in the market. Lastly, the momentum score is high, indicating a positive trend for the company moving forward.

Overall, Weyerhaeuser Company, a REIT that specializes in growing and harvesting trees, real estate development, and creating various forest products, demonstrates a mix of strengths and areas for enhancement according to the Smartkarma Smart Scores. While the company shows stability and robust dividend potential, there may be opportunities to focus on accelerating growth to further strengthen its position in the market. With a solid momentum rating, Weyerhaeuser appears to have positive prospects in the long term, provided it can leverage its strengths and address any areas of improvement effectively.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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