Weyerhaeuser Faces Q4 Earnings Decline Amid Investor Concerns

Weyerhaeuser's forecast shows a notable drop in Q4 earnings, projecting $0.07 per share, a 56.3% decline year-on-year. This decline, coupled with rising operating costs, could negatively impact its stock price.

Date: 09-01-2025

AI Rating: 4

Stock Price Impact Analysis

Weyerhaeuser Company (WY) is expected to report a Q4 profit of $0.07 per share, significantly lower than last year’s $0.16, indicating a sharp decline of 56.3%. This projected decrease in Earnings Per Share (EPS), alongside a forecast for fiscal 2024 EPS at $0.49, which is nearly a 52% decrease from $1.02 in fiscal 2023, may lead to investor skepticism regarding future financial performance.

While Weyerhaeuser has shown stronger-than-expected Q3 adjusted earnings, the subsequent drop in stock prices suggests that investors are concerned about other financial metrics. Notably, the company recorded EBITDA projections of $236 million for Q4, a decline from the year-ago period. This decline in earnings before interest, taxes, depreciation, and amortization highlights potential trouble in profitability and cash flow.

The recent analyst consensus rating of 'Moderate Buy' reflects a balance of optimism versus the company’s current performance woes. The presence of six 'Strong Buys' and three 'Holds' indicates that some analysts believe there could be a turnaround in future earnings, especially with a rebound in EPS anticipated for fiscal 2025 at $0.83, a 69.4% increase year-over-year.

However, the backdrop of underperformance against the S&P 500 index, with a 19.1% drop compared to the general market rise of 23.4%, signals serious investor hesitance. Concerns over raw material costs and lower-than-expected net sales further aggravate the situation, potentially contributing to a bearish outlook that could negatively influence stock prices.

Stocks: WY