Market Overview

Earnings Outlook For Weyerhaeuser

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Weyerhaeuser (NYSE: WY) unveils its next round of earnings this Friday, October 30. Get prepared with Benzinga's ultimate preview for Weyerhaeuser's Q3 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Weyerhaeuser management projections, analysts predict EPS of $0.47 on revenue of $2.07 billion. In the same quarter last year, Weyerhaeuser reported EPS of $0.08 on revenue of $1.67 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Friday, EPS would be up 487.5%. Sales would be have grown 23.88% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0 0.13 0.05 0.10
EPS Actual 0.11 0.18 0.03 0.08
Revenue Estimate 1.42 B 1.65 B 1.53 B 1.68 B
Revenue Actual 1.63 B 1.73 B 1.55 B 1.67 B

Stock Performance

Over the last 52-week period, shares are down 8.07%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Weyerhaeuser is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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