WY - Weyerhaeuser Q2 earnings beat

2023-07-27 17:12:37 ET

Weyerhaeuser ( NYSE: WY ) on Thursday posted Q2 earnings that exceeded the average analyst estimate and advanced sequentially. Still, shares edged down 0.4% in after-hours trading as revenue rose less than expected.

"We continue to make meaningful progress towards our multi-year growth targets" after buying 22K acres of timberlands in Mississippi for ~$60M, said President and CEO Devin W. Stockfish.

"Looking forward, we are encouraged by recent improvements in the housing market, and maintain a favorable longer-term outlook for the demand fundamentals that will drive growth for our businesses," he added.

Q2 adjusted EPS of $0.32 , surpassing the $0.21 consensus, rose from $0.21 in Q1 and slid from $1.06 in the year-earlier quarter. Net sales of $2B, vs. $2.02B expected, advanced from $1.88B in Q1 and fell from $2.97B in Q2 of last year.

Adjusted EBITDA came in at $469M, up from $395M in the prior quarter and down from $1.21B in Q2 2022.

Timberlands adjusted EBITDA of $172M dipped from $188M in the previous quarter. The segment's adjusted EBITDA is expected to decline $25M Q/Q in Q3, as fee harvest volumes and sales realizations in the West are expected to be moderately lower.

Real Estate, Energy & Natural Resources adjusted EBITDA of $70M retreated from $89M in Q1. For Q3, the unit's adjusted EBITDA is expected to rise by $20M due to the timing and mix of real estate sales.

Wood products adjusted EBITDA of $270M vs. $148M in Q1. The unit's adjusted EBITDA is expected to be significantly higher than Q2 due to higher average sales realizations for lumber and oriented strand board.

Conference call on July 28 at 7:00 a.m. PT (10:00 a.m. ET).

Earlier, Weyerhaeuser Non-GAAP EPS of $0.32 beats by $0.11, revenue of $2B misses by $20M.

More on Weyerhaeuser:

• SA's Quant system rates WY a Hold
• Weyerhaeuser upgraded to Buy at BofA
• Recession Opportunities: Buying Weyerhaeuser Dividends At A Discount

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