Weyerhaeuser (NYSE:WY) Announces Earnings Results

Key Points

• Weyerhaeuser reported earnings of $0.12 per share, exceeding analysts' expectations of $0.10, but revenue declined 2.8% year-over-year to $1.88 billion.
• The company declared a quarterly dividend of $0.21 per share, resulting in an annualized dividend of $0.84 with a yield of 3.17%.
• Weyerhaeuser initiated a stock repurchase plan allowing for the buyback of up to $1.00 billion in shares, indicating confidence in the stock's value.

Weyerhaeuser (NYSE:WY - Get Free Report) issued its quarterly earnings results on Thursday. The real estate investment trust reported $0.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.10 by $0.02, Zacks reports. Weyerhaeuser had a net margin of 3.97% and a return on equity of 2.93%. The business had revenue of $1.88 billion for the quarter, compared to analyst estimates of $1.94 billion. During the same quarter in the prior year, the business posted $0.21 EPS. Weyerhaeuser's revenue for the quarter was down 2.8% compared to the same quarter last year.

Weyerhaeuser Stock Performance

Shares of WY opened at $26.50 on Friday. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.26 and a current ratio of 2.04. The stock has a market capitalization of $19.22 billion, a P/E ratio of 69.75, a P/E/G ratio of 54.50 and a beta of 1.14. The company's fifty day moving average is $26.12 and its two-hundred day moving average is $27.62. Weyerhaeuser has a 1 year low of $24.10 and a 1 year high of $34.03.

Weyerhaeuser Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 13th. Investors of record on Friday, May 30th were given a $0.21 dividend. The ex-dividend date was Friday, May 30th. This represents a $0.84 annualized dividend and a yield of 3.17%. Weyerhaeuser's dividend payout ratio (DPR) is 221.05%.

Weyerhaeuser declared that its Board of Directors has initiated a stock repurchase plan on Thursday, May 8th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the real estate investment trust to repurchase up to 5.3% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board believes its stock is undervalued.

Hedge Funds Weigh In On Weyerhaeuser

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. raised its holdings in Weyerhaeuser by 18.2% in the first quarter. Goldman Sachs Group Inc. now owns 2,249,932 shares of the real estate investment trust's stock valued at $65,878,000 after buying an additional 346,571 shares during the period. Empowered Funds LLC boosted its stake in shares of Weyerhaeuser by 3.4% during the 1st quarter. Empowered Funds LLC now owns 46,049 shares of the real estate investment trust's stock valued at $1,348,000 after buying an additional 1,498 shares during the last quarter. Finally, Intech Investment Management LLC grew its position in shares of Weyerhaeuser by 5.9% in the 1st quarter. Intech Investment Management LLC now owns 56,265 shares of the real estate investment trust's stock worth $1,647,000 after acquiring an additional 3,124 shares in the last quarter. 82.99% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. CIBC lowered their price target on shares of Weyerhaeuser from $35.00 to $32.00 and set an "outperformer" rating on the stock in a report on Tuesday, April 22nd. Citigroup decreased their target price on Weyerhaeuser from $35.00 to $31.00 and set a "buy" rating on the stock in a research report on Tuesday, June 3rd. Wall Street Zen upgraded Weyerhaeuser from a "sell" rating to a "hold" rating in a research report on Saturday. Truist Financial decreased their price target on shares of Weyerhaeuser from $33.00 to $30.00 and set a "hold" rating on the stock in a research note on Tuesday, April 22nd. Finally, The Goldman Sachs Group lowered shares of Weyerhaeuser from a "strong-buy" rating to a "strong sell" rating in a research note on Friday, May 23rd. One research analyst has rated the stock with a sell rating, three have given a hold rating, six have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $33.00.

Weyerhaeuser Company Profile

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards.

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