West Fraser Timber (NYSE:WFG) Releases Quarterly Earnings Results, Misses Expectations By $1.17 EPS

Key Points

• Earnings miss: West Fraser reported EPS of ($2.40) vs. a consensus ($1.23), missing by $1.17, though revenue of $1.33B slightly beat estimates; the company posted a negative ROE (‑5.69%) and net margin (‑17.15%).
• Stock and dividend: WFG opened down ~1.5% at $63, has a market cap of $4.79B and a negative P/E, and paid a $0.32 quarterly dividend (annualized $1.28) for a ~2.0% yield despite a negative payout ratio.
• Analyst and institutional view: The consensus rating is "Hold" with an average price target of $81.33, while institutional investors own ~40.2% of the stock and several firms (including Goldman Sachs and Invesco) recently adjusted positions.

West Fraser Timber (NYSE:WFG - Get Free Report) released its quarterly earnings data on Wednesday. The company reported ($2.40) EPS for the quarter, missing the consensus estimate of ($1.23) by ($1.17), Zacks reports. West Fraser Timber had a negative return on equity of 5.69% and a negative net margin of 17.15%.The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.29 billion.

West Fraser Timber Stock Down 1.5%

WFG stock opened at $63.00 on Thursday. The company has a market cap of $4.79 billion, a price-to-earnings ratio of -5.17 and a beta of 1.09. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.86 and a current ratio of 2.13. The business's 50-day moving average is $64.98 and its two-hundred day moving average is $64.80. West Fraser Timber has a fifty-two week low of $57.34 and a fifty-two week high of $78.55.

West Fraser Timber Announces Dividend

The company 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 is currently -10.51%.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Weiss Ratings restated a "sell (d)" rating on shares of West Fraser Timber in a research note on Monday, April 20th. Royal Bank Of Canada set a $81.00 price target on shares of West Fraser Timber in a research note on Thursday, April 16th. Zacks Research raised shares of West Fraser Timber from a "strong sell" rating to a "hold" rating in a report on Tuesday, February 24th. Finally, Raymond James Financial downgraded shares of West Fraser Timber from an "outperform" rating to a "market perform" rating and lowered their price objective for the company from $85.00 to $75.00 in a research report on Thursday, April 23rd. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, West Fraser Timber has a consensus rating of "Hold" and an average price target of $81.33.

Institutional Investors Weigh In On West Fraser Timber

Several hedge funds and other institutional investors have recently made changes to their positions in WFG. Goldman Sachs Group Inc. lifted its stake in shares of West Fraser Timber by 3.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 230,878 shares of the company's stock worth $17,764,000 after purchasing an additional 6,640 shares during the period. Cetera Investment Advisers grew its position in West Fraser Timber by 9.0% during the second quarter. Cetera Investment Advisers now owns 7,800 shares of the company's stock valued at $571,000 after buying an additional 641 shares during the period. Arrowstreet Capital Limited Partnership purchased a new stake in West Fraser Timber during the second quarter valued at approximately $5,248,000. Invesco Ltd. increased its holdings in West Fraser Timber by 2.2% during the second quarter. Invesco Ltd. now owns 114,850 shares of the company's stock valued at $8,419,000 after buying an additional 2,419 shares during the last quarter. Finally, Baird Financial Group Inc. raised its position in West Fraser Timber by 2.1% in the second quarter. Baird Financial Group Inc. now owns 23,919 shares of the company's stock worth $1,753,000 after acquiring an additional 500 shares during the period. Hedge funds and other institutional investors own 40.23% of the company's stock.

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.