Higher lumber prices initially supported WY's earnings and dividend yield, but tariffs and market volatility led to a decline in WY and WOOD ETF shares. Despite a bullish trend in lumber futures, WOOD ETF and WY shares did not follow, signaling a potential market correction due to tariff uncertainties. Tariffs on Canadian lumber exports and overall market weakness have distorted stock and commodity prices, impacting WOOD and WY shares.
Lumber producer Weyerhauser is set to benefit from President Trump's tariffs on Canada. The S&P 500 stock is up about 12% in 2025.
Falling mortgage rates and pent-up housing demand could boost new home construction, driving higher lumber demand and supporting WY shares. Scale-down buying has been effective, with WY shares recovering from January lows and Q4 earnings beating forecasts despite missing revenue targets. WY's unique REIT structure with timberland assets and a 2.84% dividend yield make it an attractive investment amid improving market conditions.
Weyerhaeuser Company (NYSE:WY ) Q4 2024 Results Conference Call January 31, 2025 10:00 AM ET Company Participants Andy Taylor - Vice President of Investor Relations Devin Stockfish - Chief Executive Officer Dave Wold - Chief Financial Officer Conference Call Participants Susan Maklari - Goldman Sachs Ketan Mamtora - BMO Capital Markets George Staphos - Bank of America Hamir Patel - CIBC Capital Markets Mark Weintraub - Seaport Research Partners Matthew McKellar - RBC Capital Markets Mike Roxland - Truist Securities Operator Greetings, and welcome to the Weyerhaeuser Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.
WY fourth-quarter results reflect lower fee harvest volumes in the West and lower export volumes.
Although the revenue and EPS for Weyerhaeuser (WY) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Weyerhaeuser (WY) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.16 per share a year ago.
WY's fourth-quarter results are likely to reflect sequentially stable or slightly improved earnings and adjusted EBITDA, though seasonal slowdowns and global demand uncertainty remain challenges.
Weyerhaeuser (WY) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The heavy selling pressure might have exhausted for Weyerhaeuser (WY) as it is technically in oversold territory now. In addition to this technical measure, strong agreement among Wall Street analysts in revising earnings estimates higher indicates that the stock is ripe for a trend reversal.
WY is set to double TimberStrand's total North American capacity with new facility in Monticello and Warren, AR.
Lumber prices indicate economic health and new housing demand, but lumber futures are illiquid, leading to high volatility during bullish or bearish trends. Weyerhaeuser Company offers a more liquid investment correlated with lumber prices, outperforming during downturns and underperforming during upswings. Falling short-term interest rates could eventually lower long-term rates, boosting new home construction and increasing lumber demand, positively impacting WY shares.