Earnings Preview: Weyerhaeuser

Weyerhaeuser WY releases its next round of earnings this Friday, January 29. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

Net Income, Earnings, 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

Weyerhaeuser earnings will be near $0.46 per share on sales of $1.92 billion, according to analysts. In the same quarter last year, Weyerhaeuser reported earnings per share of $0.03 on sales of $1.55 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be up 1433.33%. Sales would be up 24.03% on a year-over-year basis. Weyerhaeuser's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

For a full 12 months, the return has risen by 12.92%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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.