On Feb 14, 2014, we issued an updated research report on
Plum Creek Timber Company Inc.
). Hurt by higher expenses tied to the Southern Timberlands
acquisition, the company's fourth-quarter 2013 earnings fell
substantially from the prior year. Moreover, lower operations in
the real estate segment in the quarter added to the woes.
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The company reported fourth-quarter 2013 earnings of 24 cents per
share, well below the prior-year quarter figure of 49 cents.
However, excluding these expenses, Plum Creek's adjusted earnings
came in at 31 cents, which exceeded the Zacks Consensus Estimate
of 28 cents.
Decreasing harvest volume in the Northern segment has been
weighing on Plum Creek's results over the past few quarters.
Furthermore, the cyclical nature of the business, stiff
competition and strict environment policies remain causes of
concern. As such, we remain skeptical about the company's growth
Analysts turned more bearish on the stock's future performance.
This is evident from the movement witnessed in the Zacks
Consensus Estimate that decreased 11.9% to $1.40 for 2014 and
7.3% to $1.64 per share for 2015, over the past 30 days.
Plum Creek currently carries a Zacks Rank #4 (Sell).
Key Picks from the Sector
Some better-ranked stocks in the same industry worth considering
Universal Forest Products Inc.
). While Universal Forest Products carries a Zacks Rank #1
(Strong Buy), Potlatch and Weyerhaeuser have a Zacks Rank #2