[ACCESSWIRE]
LONDON, UK / ACCESSWIRE / August 10, 2016 / Active Wall St. announces its post-earnings coverage on Weyerhaeuser Co. (NYSE: WY). On August 05, 2016, the company posted its second quarter 2016 results. The timberlands manager and wood producer noted that its Wood Products segment reported its strongest second quarter earnings in a decade. Register with us now for your free membership at: http://www.activewallst.com/register/.
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Earnings Reviewed
For the three months ended on June 30, 2016, Weyerhaeuser reported net income of $157 million up 18% from $133 million in the year ago period. On a per-share basis, the company reported earnings of $0.21 per share in Q2 FY16 compared to earnings of $0.26 per share in Q2 FY15. Excluding special items, the company earned $0.17 per share compared to $0.22 per share in the year earlier period, missing analysts' expectation of adjusted earnings of $0.22 per share.
During second-quarter 2016, Weyerhaeuser announced the sale of its Cellulose Fibers pulp mills and Liquid Packaging Board business for approximately $2.5 billion, hence the company has treated the entire Cellulose Fibers segment as discontinued item in the quarter under review. The company noted that Q2 FY16 results included after-tax earnings of $38 million from discontinued operations. During the reported quarter, Weyerhaeuser generated revenues of $1.66 billion compared to $1.3 billion a year earlier, which was below analysts' consensus estimate of $1.84 billion.
Segment Report
During Q2 FY16, the company's revenue from discontinued operations including its cellulose-fibers segment totaled $456 million, down 2.4% on y-o-y basis.
For Q2 FY16, revenue in its wood-products unit, its largest business which accounts for more than 69% of its total net sales, came in at $1.16 billion, up 14.1% as compared to revenue of $1.03 billion in Q2 FY15.
Revenue in Weyerhaeuser's timberland segment totaled $471 million, up 43.6% on y-o-y basis.
In its Real Estate, Energy, and Natural Resources division the company reported revenue of $38 million, up 192.3% from the year-ago period.
Weyerhaeuser merged with Plum Creek Timber Co. in February 2016. Weyerhaeuser is moving its corporate headquarters from Federal Way to Seattle in mid-September.
Dividend & Share Repurchase
During Q2 FY16, Weyerhaeuser paid dividends worth $228 million and repurchased $831 million worth of shares.
Outlook
For third quarter of 2016, Weyerhaeuser anticipates slightly lower earnings and adjusted EBITDA from the Timberlands segment. For its Real Estate, Energy, and Natural Resources segment, the company is forecasting sequentially higher earnings on the back of improving real estate business. For the Wood Products segment, Weyerhaeuser expects significantly higher earnings and adjusted EBITDA in the third quarter. The company anticipates improved price realizations across most product lines.
Stock Performance
Weyerhaeuser's shares declined marginally on Tuesday, August 09, 2016, finishing the trading session at $32.33, down 0.12%. A total of 2.22 million shares were traded for the day. The company's share has advanced 3.49% in the past one month and 10.17% on YTD basis.
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SOURCE: Active Wall Street
