West Fraser Timber (NYSE:WFG) Releases Earnings Results, Misses Estimates By $0.91 EPS

Key Points

• West Fraser Timber reported a quarterly loss of ($2.63) EPS, significantly missing the estimated loss of ($0.76) by ($1.87).
• The company announced a quarterly dividend of $0.32, representing an annualized yield of 1.9%, although it has a negative dividend payout ratio of -73.14%.
• Analysts have mixed ratings for the stock, with three analysts giving a "Buy" rating, while others set a lower price target, with the consensus price target currently at $89.50.

West Fraser Timber (NYSE:WFG - Get Free Report) posted its earnings results on Wednesday. The company reported ($2.63) earnings per share for the quarter, missing analysts' consensus estimates of ($1.72) by ($0.91), Zacks reports. The firm had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.38 billion. West Fraser Timber had a negative return on equity of 0.85% and a negative net margin of 2.18%.

West Fraser Timber Price Performance

Shares of WFG opened at $67.07 on Thursday. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.89 and a quick ratio of 1.61. The stock has a market cap of $5.29 billion, a PE ratio of -38.33 and a beta of 1.13. The firm has a 50-day simple moving average of $71.18 and a two-hundred day simple moving average of $72.96. West Fraser Timber has a 1-year low of $65.45 and a 1-year high of $100.33.

West Fraser Timber Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, October 14th. Shareholders of record on Thursday, September 25th were given a dividend of $0.32 per share. The ex-dividend date was Thursday, September 25th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.9%. West Fraser Timber's dividend payout ratio (DPR) is currently -73.14%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. CANADA LIFE ASSURANCE Co lifted its position in shares of West Fraser Timber by 21.8% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 100,805 shares of the company's stock worth $7,379,000 after buying an additional 18,055 shares during the last quarter. Tower Research Capital LLC TRC increased its stake in West Fraser Timber by 422.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,613 shares of the company's stock valued at $485,000 after buying an additional 5,348 shares during the period. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its stake in West Fraser Timber by 7.0% in the 2nd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 34,642 shares of the company's stock valued at $2,542,000 after buying an additional 2,261 shares during the period. Lighthouse Investment Partners LLC acquired a new position in West Fraser Timber in the 2nd quarter valued at $1,013,000. Finally, Jane Street Group LLC acquired a new position in West Fraser Timber in the 2nd quarter valued at $471,000. Institutional investors and hedge funds own 40.23% of the company's stock.

Wall Street Analysts Forecast Growth

WFG has been the subject of several analyst reports. Royal Bank Of Canada reduced their price target on shares of West Fraser Timber from $97.00 to $92.00 and set an "outperform" rating for the company in a research report on Monday. Wall Street Zen cut shares of West Fraser Timber from a "hold" rating to a "sell" rating in a research note on Friday, July 18th. Raymond James Financial reduced their target price on shares of West Fraser Timber from $75.00 to $70.00 and set a "market perform" rating on the stock in a report on Wednesday, October 15th. Zacks Research upgraded shares of West Fraser Timber from a "strong sell" rating to a "hold" rating in a report on Friday, September 26th. Finally, TD Securities dropped their target price on shares of West Fraser Timber from $98.00 to $96.00 and set a "buy" rating on the stock in a research note on Friday, July 25th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $89.50.

West Fraser Timber Company Profile

West Fraser Timber Co Ltd., a diversified wood products company, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals and renewable energy. It offers spruce-pine-fir, douglas fir-larch, hem-fir, and southern yellow pine lumber, treated wood products, medium density fiberboard panels and plywood, oriented strand board, and laminated veneer lumber wood products, as well as particleboards.