West Fraser Timber (NYSE:WFG) Issues Earnings Results, Misses Estimates By $0.27 EPS

Key Points

• West Fraser Timber missed quarterly expectations: It reported a loss of $1.03 per share versus the $0.76 consensus loss, while revenue of $1.36 billion fell short of the $1.42 billion estimate.
• Shares dipped following the results: WFG traded down $0.40 to $68.26, with the company showing a negative net margin of 22.98% and negative return on equity of 10.84%.
• Analysts remain moderately bullish: Six analysts rate the stock Buy, two Hold, and one Sell, producing a “Moderate Buy” consensus and an average price target of $83.80. The company also maintains a quarterly dividend of $0.32 per share, or a 1.9% annualized yield.

West Fraser Timber (NYSE:WFG - Get Free Report) released its quarterly earnings data on Wednesday. The company reported ($1.03) earnings per share for the quarter, missing analysts' consensus estimates of ($0.76) by ($0.27), reports. The business had revenue of $1.36 billion during the quarter, compared to analysts' expectations of $1.42 billion. West Fraser Timber had a negative return on equity of 10.84% and a negative net margin of 22.98%.

West Fraser Timber Stock Performance

WFG traded down $0.40 during trading on Thursday, hitting $68.26. 162,412 shares of the company traded hands, compared to its average volume of 215,108. The stock's fifty day moving average is $68.41 and its 200 day moving average is $67.30. West Fraser Timber has a one year low of $57.34 and a one year high of $76.99. The company has a quick ratio of 0.83, a current ratio of 2.06 and a debt-to-equity ratio of 0.05. The firm has a market cap of $5.34 billion, a P/E ratio of -4.43 and a beta of 1.06.

West Fraser Timber Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, October 19th. Investors of record on Tuesday, September 29th were issued a dividend of $0.32 per share. The ex-dividend date was Tuesday, September 29th. This represents a $1.28 annualized dividend and a yield of 1.9%. West Fraser Timber's payout ratio is -8.29%.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on WFG shares. Royal Bank Of Canada reduced their price objective on shares of West Fraser Timber from $83.00 to $81.00 and set an "outperform" rating on the stock in a report on Friday, October 16th. TD Securities reissued a "buy" rating on shares of West Fraser Timber in a research note on Friday, July 31st. Cantor Fitzgerald upgraded West Fraser Timber to a "buy" rating in a research note on Thursday. Canadian Imperial Bank of Commerce restated a "neutral" rating on shares of West Fraser Timber in a report on Friday, July 31st. Finally, Raymond James Financial reiterated an "outperform" rating and set a $80.00 price objective (down from $85.00) on shares of West Fraser Timber in a research report on Thursday. Six analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $83.80.

West Fraser Timber Company Profile

West Fraser Timber Co Ltd. is a diversified wood products company that manufactures and sells building materials for residential, commercial and industrial applications. Its principal products include lumber, oriented strand board, laminated veneer lumber and other engineered wood products used in construction, remodeling and manufacturing.

The company operates wood product manufacturing facilities and manages timber resources across Canada and the United States, with a significant presence in Western Canada and the U.S.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.