West Fraser Timber (NYSE:WFG) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• West Fraser Timber reported a quarterly loss of $0.78 per share, narrowly beating the consensus estimate of a $0.79 loss. The company posted a negative net margin of 21.86% and negative return on equity of 9.67%.
• Shares fell $0.81 to $66.63 during Wednesday trading. The company also paid a quarterly dividend of $0.32 per share, equal to an annualized $1.28 dividend and a 1.9% yield.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $83.60; institutional investors own 40.23% of the stock.

West Fraser Timber (NYSE:WFG - Get Free Report) announced its earnings results on Wednesday. The company reported ($0.78) earnings per share for the quarter, beating the consensus estimate of ($0.79) by $0.01, Zacks reports. West Fraser Timber had a negative net margin of 21.86% and a negative return on equity of 9.67%.

West Fraser Timber Stock Performance

West Fraser Timber stock traded down $0.81 during mid-day trading on Wednesday, reaching $66.63. The company's stock had a trading volume of 170,509 shares, compared to its average volume of 214,632. The company has a current ratio of 1.84, a quick ratio of 0.66 and a debt-to-equity ratio of 0.05. West Fraser Timber has a twelve month low of $57.34 and a twelve month high of $76.99. The business has a 50 day moving average price of $67.47 and a 200-day moving average price of $66.76. The firm has a market cap of $5.22 billion, a price-to-earnings ratio of -4.43 and a beta of 1.00.

West Fraser Timber Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, July 13th. Shareholders of record on Thursday, June 25th were issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend was Thursday, June 25th. West Fraser Timber's payout ratio is currently -8.51%.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Royal Bank Of Canada upped their price objective on shares of West Fraser Timber from $80.00 to $85.00 and gave the company an "outperform" rating in a research report on Friday, July 17th. Fraser Mackenzie dropped their price objective on West Fraser Timber from $88.00 to $86.00 and set a "buy" rating on the stock in a report on Friday, May 1st. Weiss Ratings reissued a "sell (d)" rating on shares of West Fraser Timber in a research report on Friday, July 17th. Zacks Research raised shares of West Fraser Timber from a "strong sell" rating to a "hold" rating in a research report on Friday, July 17th. Finally, TD Securities reaffirmed a "buy" rating and set a $86.00 price target on shares of West Fraser Timber in a research report on Friday, May 1st. Four investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, West Fraser Timber has a consensus rating of "Hold" and an average price target of $83.60.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of WFG. Price T Rowe Associates Inc. MD grew its stake in West Fraser Timber by 28.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,613,139 shares of the company's stock worth $220,799,000 after buying an additional 802,477 shares during the last quarter. Royal Bank of Canada increased its holdings in shares of West Fraser Timber by 4.5% in the 4th quarter. Royal Bank of Canada now owns 3,129,765 shares of the company's stock worth $191,261,000 after acquiring an additional 135,472 shares during the period. Mackenzie Financial Corp increased its holdings in shares of West Fraser Timber by 6.8% in the 4th quarter. Mackenzie Financial Corp now owns 1,836,255 shares of the company's stock worth $111,668,000 after acquiring an additional 116,161 shares during the period. T. Rowe Price Investment Management Inc. lifted its position in West Fraser Timber by 500.0% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 530,573 shares of the company's stock valued at $32,424,000 after purchasing an additional 442,138 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its holdings in shares of West Fraser Timber by 27.4% during the fourth quarter. Goldman Sachs Group Inc. now owns 367,049 shares of the company's stock valued at $22,430,000 after purchasing an additional 78,862 shares during the period. 40.23% of the stock is currently owned by institutional investors.

West Fraser Timber Company Profile

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.

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