Weyerhaeuser Company (WY): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

By Zacks Investment Research,

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Weyerhaeuser's fourth-quarter 2014 earnings of $0.27 came in below the Zacks Consensus Estimate of $0.28. Revenues of $1,788 million inched up 1.1% year over year but missed the Zacks Consensus Estimate of $1,809 million. Timberland revenues fell 1.4% due to lower earnings from sale of non-strategic timberland, while Wood Products and Cellulose Fibers gained 2.3% and 0.8%, respectively. For first-quarter 2015, the company expects sequentially higher earnings from the Timberlands and Wood Products businesses. On the other hand, it projects lower earnings from its Cellulose Fibers segment due to reduced pulp realizations, higher maintenance expenses and lower liquid packaging board shipment volumes. Considering all these, we have downgraded our recommendation on the stock to Neutral from Outperform.


Based in Washington, Weyerhaeuser Company (WY) is one of the leading U.S. forest product companies with operations primarily concentrated in Southern California, Nevada, Washington, Texas, Maryland and Virginia. Weyerhaeuser caters to a diverse clientele spread over the U.S., Canada, Japan, Europe and other regions. The company grows and harvests trees, builds homes and manufactures forest products worldwide, primarily to be used as lumber, pulp and paper, and other wood and building products. It offers logs, hardwood lumber, timber, poles and plywood, as well as minerals, oil, gas, seeds and seedlings. The company operates its businesses through the segments listed below:

The Wood Products segment produces softwood lumber, plywood and veneer, oriented strand board (OSB), composite and other panels, and other products.

The Cellulose Fibers segment produces pulp, a range of both coated and uncoated papers and bleached board used in the production of liquid containers. The company operates six mills and two converting facilities.

The Timberlands segment owns and manages roughly 7.0 million acres of timberland in North America, post the acquisition of Longview Timber LLC.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: WY

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