Scotiabank Cuts Earnings Estimates for West Fraser Timber

Key Points

• Scotiabank cut its FY2026 EPS estimate for West Fraser to ($3.57) from ($1.14), versus the consensus of ($3.18), and projects FY2027 EPS of ($0.19).
• West Fraser missed its most recent quarter, reporting EPS of ($2.40) vs. expectations of ($1.23), with revenue of $1.33 billion and a negative net margin of about 21.9%.
• Analysts are mixed—several firms have cut price targets or downgraded the stock, but the consensus rating remains Hold with a consensus price target of $82.60.

West Fraser Timber Co. Ltd. (NYSE:WFG - Free Report) - Investment analysts at Scotiabank decreased their FY2026 earnings estimates for West Fraser Timber in a report issued on Monday, May 4th. Scotiabank analyst B. Isaacson now expects that the company will earn ($3.57) per share for the year, down from their prior estimate of ($1.14). The consensus estimate for West Fraser Timber's current full-year earnings is ($3.18) per share. Scotiabank also issued estimates for West Fraser Timber's FY2027 earnings at ($0.19) EPS.

Other equities analysts also recently issued reports about the company. Raymond James Financial downgraded West Fraser Timber from an "outperform" rating to a "market perform" rating and lowered their price target for the company from $85.00 to $75.00 in a report on Thursday, April 23rd. Fraser Mackenzie dropped their price target on West Fraser Timber from $88.00 to $86.00 and set a "buy" rating on the stock in a research note on Friday, May 1st. Royal Bank Of Canada lowered their target price on shares of West Fraser Timber from $81.00 to $80.00 and set an "outperform" rating on the stock in a research report on Friday, May 1st. Zacks Research raised West Fraser Timber from a "strong sell" rating to a "hold" rating in a report on Tuesday, February 24th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of West Fraser Timber in a report on Monday, April 20th. Four research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, West Fraser Timber presently has a consensus rating of "Hold" and a consensus price target of $82.60.

West Fraser Timber Stock Up 5.2%

WFG stock opened at $62.84 on Thursday. The company's 50 day moving average price is $64.61 and its 200 day moving average price is $64.65. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.66 and a current ratio of 1.84. West Fraser Timber has a fifty-two week low of $57.34 and a fifty-two week high of $78.55. The firm has a market capitalization of $4.78 billion, a price-to-earnings ratio of -4.18 and a beta of 0.97.

West Fraser Timber (NYSE:WFG - Get Free Report) last released its earnings results on Wednesday, April 29th. The company reported ($2.40) earnings per share for the quarter, missing analysts' consensus estimates of ($1.23) by ($1.17). West Fraser Timber had a negative return on equity of 9.67% and a negative net margin of 21.86%.The firm had revenue of $1.33 billion for the quarter, compared to analysts' expectations of $1.32 billion.

Institutional Investors Weigh In On West Fraser Timber

A number of hedge funds and other institutional investors have recently bought and sold shares of WFG. EFG International AG acquired a new stake in West Fraser Timber in the fourth quarter valued at $31,000. Physician Wealth Advisors Inc. lifted its holdings in West Fraser Timber by 75.8% in the third quarter. Physician Wealth Advisors Inc. now owns 552 shares of the company's stock valued at $38,000 after acquiring an additional 238 shares during the period. Jones Financial Companies Lllp lifted its holdings in West Fraser Timber by 212.0% in the third quarter. Jones Financial Companies Lllp now owns 780 shares of the company's stock valued at $52,000 after acquiring an additional 530 shares during the period. Jain Global LLC acquired a new stake in West Fraser Timber in the third quarter valued at $224,000. Finally, Park Avenue Securities LLC acquired a new stake in West Fraser Timber in the fourth quarter valued at $229,000. Institutional investors and hedge funds own 40.23% of the company's stock.

West Fraser Timber Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 2nd. Shareholders of record on Friday, March 13th were issued a $0.32 dividend. The ex-dividend date of this dividend was Friday, March 13th. This represents a $1.28 dividend on an annualized basis and a yield of 2.0%. West Fraser Timber's dividend payout ratio (DPR) is -8.51%.

About West Fraser Timber

West Fraser Timber Co Ltd. NYSE: WFG is a leading North American diversified wood products company headquartered in Vancouver, British Columbia. The company operates a broad portfolio of manufacturing facilities that produce lumber, engineered wood products such as laminated veneer lumber (LVL), oriented strand board (OSB) and plywood, as well as medium density fibreboard (MDF), particleboard, pulp and paper. West Fraser's integrated production model spans harvesting, milling and finishing, allowing it to serve a wide range of residential, commercial and industrial construction markets.

Founded in 1955 as West Fraser Mills, the company has grown through both organic investment and strategic acquisitions to become one of the largest lumber producers in the world.

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.