NYSE$WY

Weyerhaeuser Co · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Weyerhaeuser reported net earnings of $72 million, or $0.10 per diluted share, on net sales of $1.6 billion for the second quarter.

Weyerhaeuser reported second quarter net earnings of $72 million, or 10 cents per diluted share, on net sales of $1.6 billion. Adjusted EBITDA for the second quarter of 2020 was $386 million.

  • Net earnings achieved $72 million, or $0.10 per diluted share.
  • Adjusted EBITDA increased by more than 12 percent compared to second quarter 2019.
  • Delivered strong results across each of the businesses despite the disruptive impacts of the COVID-19 pandemic
  • Generated solid cash flow and strengthen balance sheet.

Headline financials

Total Revenue

$1.63B

Previous: $1.69B-3.6%
EPS (adj)

$0.11

Previous: $0.16-31.3%
Capital Expenditures

-$32M

Previous: -$112M+71.4%
Free Cash Flow

$40M

Previous: $16M+150.0%
Net Income

$72M

Previous: $128M-43.8%
Operating Income

$243M

Previous: $186M+30.6%
Gross Profit

$348M

Previous: $302M+15.2%
Cash & Equivalents

$643M

Previous: $212M+203.3%
Total Assets

$16.3B

Previous: $17B-4.6%

Revenue & EPS history

Weyerhaeuser · Revenue · Quarterly

$1.63B

Q2 2020-3.6%vs Q2 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Weyerhaeuser · $1.75B total across 3 segments · Q2 2020

  • Wood Products
    $1.21B
  • Timberlands
    $480M
  • Real Estate, Energy & Natural Resources
    $65M

Forward guidance

Weyerhaeuser expects third quarter earnings and Adjusted EBITDA will be significantly higher than second quarter.

Tailwinds

  • U.S. housing activity is improving
  • Third quarter benchmark pricing for lumber and oriented strand board is significantly higher than the second quarter average.
  • Anticipates increased sales volumes across most product lines.
  • Expects third quarter earnings and Adjusted EBITDA will be significantly higher than second quarter (Wood Products).
  • Full year 2020 Adjusted EBITDA for the segment will be approximately $235 million (Real Estate, Energy & Natural Resources).

Headwinds

  • Rising COVID-19 infection rates
  • Rollback of certain economic reopening plans.
  • Third quarter earnings and Adjusted EBITDA will be lower than second quarter (Timberlands)
  • Anticipates slightly lower average log sales realizations and seasonally higher road, forestry, and per unit logging and hauling costs (Timberlands).
  • Expects seasonally higher forestry expenses, decreased fee harvest volumes and slightly lower average log sales realizations, primarily due to mix (Timberlands).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.0%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-1.4%

Avg return

30 days after

39%

27 / 69 earnings

Positive

+6.7%

Q4 2021

Best reaction

-18.7%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-2.0%+0.1%
Q4 2025-0.3%+3.0%-5.4%
Q3 2025-4.2%-4.4%-5.5%
Q2 2025-1.7%-1.1%-5.3%
Q1 2025-2.7%+1.6%-1.1%
Q4 2024-1.1%-2.0%-2.8%
Q3 2024-0.2%-3.0%-1.9%
Q2 2024+5.8%+6.3%+5.0%
Q1 2024-1.6%-4.3%-4.2%
Q4 2023-0.1%-0.1%+0.8%
Q3 2023+0.0%+0.3%+11.6%
Q2 2023-2.1%-1.2%-5.1%
Q1 2023+2.5%-0.4%-3.2%
Q4 2022+4.8%+5.1%-5.7%
Q3 2022+0.5%-1.8%+4.4%
Q2 2022+1.5%-2.3%-2.7%
Q1 2022-4.4%+0.8%-3.7%
Q4 2021+6.7%+9.4%+3.5%
Q3 2021+1.6%+5.1%+5.5%
Q2 2021-1.8%-2.3%+3.2%
Q1 2021-0.7%-2.7%-4.2%
Q4 2020-3.0%+2.9%+2.6%
Q3 2020-1.0%+0.2%+1.1%
Q2 2020-1.4%-0.2%+8.8%
Q1 2020-18.7%-16.6%-7.7%
Q4 2019-6.2%-3.8%-13.6%
Q3 2019+0.8%+3.1%-0.5%
Q2 2019+3.1%+1.4%+0.2%
Q1 2019+0.8%+1.4%-12.4%
Q4 2018-0.3%+0.1%-4.7%
Q3 2018-8.7%-8.0%-9.1%
Q2 2018-2.3%-2.4%-0.1%
Q1 2018+0.4%-0.3%+0.8%
Q4 2017-6.4%-7.1%-6.8%
Q3 2017+2.1%+2.7%+3.7%
Q2 2017-3.5%-5.4%-7.4%
Q1 2017-3.1%-4.1%-4.8%
Q4 2016-0.1%+3.1%+8.6%
Q3 2016-1.7%-5.4%+5.1%
Q2 2016-0.9%+0.2%-2.5%
Q1 2016-1.9%
Q4 2015-9.1%
Q3 2015+5.4%
Q2 2015+1.2%
Q1 2015+0.3%
Q4 2014-0.5%
Q3 2014+2.2%
Q2 2014+0.9%
Q1 2014+3.7%
Q4 2013-4.5%
Q3 2013+3.4%
Q2 2013-3.9%
Q1 2013-3.0%
Q4 2011-2.8%
Q4 2012-4.6%
Q3 2012+1.4%
Q2 2012+2.6%
Q1 2012-2.5%
Q3 2011-1.8%
Q2 2011-8.4%
Q1 2011+2.1%
Q4 2010+1.9%
Q3 2010+4.7%
Q2 2010-1.3%
Q4 2009-1.3%
Q1 2009+4.4%
Q1 2010+0.8%
Q4 2008-7.1%
Q2 2009-7.1%

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