Weyerhaeuser Posts Upbeat Q3 Results; Street Says Buy

Timberland company Weyerhaeuser (WY) has reported better-than-expected third-quarter results on the back of growth in net sales. Following the earnings, shares of the company declined 1.9% to close at $35.72 on Friday.

Quarterly net sales rose 11% year-over-year to $2.34 billion and surpassed the consensus estimate of $2.33 billion. Meanwhile, quarterly earnings of $0.60 per share grew 15.4% year-over-year and topped the consensus estimate of $0.57 per share.

The company’s adjusted EBITDA increased marginally to $746 million from the previous year’s figure of $745 million.

The CEO of Weyerhaeuser, Devin W. Stockfish, said, “In the third quarter, we delivered strong results across each of our businesses despite weather-related operational disruptions, continued supply chain challenges and the ongoing pandemic. Our teams did an exceptional job navigating these headwinds and I’m extremely proud of their collective focus on operating safely, strong execution and continuing to serve our customers.” (See Weyerhaeuser stock chart on TipRanks)

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Two months ago, Citigroup analyst Anthony Pettinari reiterated a Buy rating on the stock with a price target of $45, which implies upside potential of 26% from current levels.

According to the analyst, value drivers for the company in the form of land sales and repurchase of shares could make it an attractive choice for investors.

Consensus among analysts is a Strong Buy based on 4 Buys and 1 Hold. The average Weyerhaeuser price target of $43.67 implies upside potential of 22.3% from current levels.

Weyerhaeuser scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained about 27% over the past year.

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