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

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Summary:
Weyerhaeuser reported adjusted earnings of $0.33 per share in third-quarter 2014, up 43.5% year over year and above the Zacks Consensus Estimate of $0.30. Revenues climbed 3.1% on the back of healthy segmental performance. Divestiture of real estate business resulted in gains worth $1 billion. Roughly 59 million shares were retired in relation to the divestiture, which combined with buyback of common shares, lowered the company's share count and hence, boosted its earnings. For the fourth quarter, the Timberlands and Wood Products businesses are anticipated to post sequentially lower earnings while the Cellulose Fibers segment will benefit from lower maintenance costs. Considering the above factors, we upgrade our recommendation on Weyerhaeuser to Outperform from Neutral.

Overview:

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 The NASDAQ OMX Group, Inc.



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