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Weyerhaeuser (WY) to report Q1 Earnings: What's in Store?
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Weyerhaeuser Company (WY - Free Report) is scheduled to report first-quarter 2018 results on Apr 27, before the market opens.
The wood-based building products manufacturer delivered better-than-expected results in three of the last four reported quarters while lagged in one. Average earnings surprise was a positive 6.04%. Notably, in the last reported quarter, the company’s earnings of 31 cents per share came in below the Zacks Consensus Estimate of 35 cents.
In the last month, the company’s shares have yielded 4.8% return, outperforming the gain of 4.1% recorded by the industry.
Let us see how things are shaping up for Weyerhaeuser prior to this earnings announcement.
Factors Influencing Q1 Results
We believe that operating conditions for companies like Weyerhaeuser have been quite favorable for the past few months. Particularly, the housing market in the United States strengthened in the first quarter of 2018, evident from roughly 4.9% sequential growth in housing starts. These along with the demand for repair and remodeling activities, as well as growing domestic and world economy, will be beneficial for the company’s Timberlands and Wood Products segments.
Weyerhaeuser’s expectation for the full year will give a rough idea of the factors that might have influenced the quarter’s result. For 2018, it anticipates housing starts (single-family) to increase 10% over the previous year to approximately 1.3 million. Also, anti-dumping duties levied on Canadian softwood lumber producers must be seen positively. Furthermore, efforts to drive operation excellence are predicted to yield benefits of $40-$50 million in 2018 for the Timberlands segment and roughly $40-$60 million for the Wood Products segment.
For first-quarter 2018, higher log sales realization and lower fee harvest volume will influence Timberland’s results in the West while higher trucking expenses, flat realizations and lower fee harvest volumes will influence results in the South. Earnings and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) are predicted to be comparable with the previous quarter.
Softness in sales in Real Estate business and fall in royalties, derived from the Energy and Natural Resources businesses, will impact results for the Real Estate, Energy and Natural Resources segment in the first quarter. Earnings and adjusted EBITDA is predicted to be lower sequentially.
Improvement in operating rates, volumes and sales realizations will influence Wood Products segment’s lumber business while weakness in sales realizations will impact oriented strand board business. Earnings and adjusted EBITDA are predicted to be comparable with the previous quarter.
Other concerning factors include industry competition, high debt levels, labor constraints and lack of suitable lot.
Earnings Whisper
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case for Weyerhaeuser as you will see below.
Zacks ESP: Earnings ESP of Weyerhaeuser is currently 0.00%. Both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 33 cents.
Zacks Rank: Weyerhaeuser currently carries a Zacks Rank of 2.
Note that we caution against stocks with Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the industry you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +15.79% and a Zacks Rank #1.
Floor & Decor Holdings, Inc. (FND - Free Report) has an Earnings ESP of +0.55% and a Zacks Rank #3.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Weyerhaeuser (WY) to report Q1 Earnings: What's in Store?
Weyerhaeuser Company (WY - Free Report) is scheduled to report first-quarter 2018 results on Apr 27, before the market opens.
The wood-based building products manufacturer delivered better-than-expected results in three of the last four reported quarters while lagged in one. Average earnings surprise was a positive 6.04%. Notably, in the last reported quarter, the company’s earnings of 31 cents per share came in below the Zacks Consensus Estimate of 35 cents.
In the last month, the company’s shares have yielded 4.8% return, outperforming the gain of 4.1% recorded by the industry.
Let us see how things are shaping up for Weyerhaeuser prior to this earnings announcement.
Factors Influencing Q1 Results
We believe that operating conditions for companies like Weyerhaeuser have been quite favorable for the past few months. Particularly, the housing market in the United States strengthened in the first quarter of 2018, evident from roughly 4.9% sequential growth in housing starts. These along with the demand for repair and remodeling activities, as well as growing domestic and world economy, will be beneficial for the company’s Timberlands and Wood Products segments.
Weyerhaeuser’s expectation for the full year will give a rough idea of the factors that might have influenced the quarter’s result. For 2018, it anticipates housing starts (single-family) to increase 10% over the previous year to approximately 1.3 million. Also, anti-dumping duties levied on Canadian softwood lumber producers must be seen positively. Furthermore, efforts to drive operation excellence are predicted to yield benefits of $40-$50 million in 2018 for the Timberlands segment and roughly $40-$60 million for the Wood Products segment.
For first-quarter 2018, higher log sales realization and lower fee harvest volume will influence Timberland’s results in the West while higher trucking expenses, flat realizations and lower fee harvest volumes will influence results in the South. Earnings and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) are predicted to be comparable with the previous quarter.
Softness in sales in Real Estate business and fall in royalties, derived from the Energy and Natural Resources businesses, will impact results for the Real Estate, Energy and Natural Resources segment in the first quarter. Earnings and adjusted EBITDA is predicted to be lower sequentially.
Improvement in operating rates, volumes and sales realizations will influence Wood Products segment’s lumber business while weakness in sales realizations will impact oriented strand board business. Earnings and adjusted EBITDA are predicted to be comparable with the previous quarter.
Other concerning factors include industry competition, high debt levels, labor constraints and lack of suitable lot.
Earnings Whisper
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case for Weyerhaeuser as you will see below.
Zacks ESP: Earnings ESP of Weyerhaeuser is currently 0.00%. Both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 33 cents.
Weyerhaeuser Company Price and EPS Surprise
Weyerhaeuser Company Price and EPS Surprise | Weyerhaeuser Company Quote
Zacks Rank: Weyerhaeuser currently carries a Zacks Rank of 2.
Note that we caution against stocks with Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the industry you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Boise Cascade, L.L.C. (BCC - Free Report) has an Earnings ESP of +27.61% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +15.79% and a Zacks Rank #1.
Floor & Decor Holdings, Inc. (FND - Free Report) has an Earnings ESP of +0.55% and a Zacks Rank #3.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>