NYSE$WY

Weyerhaeuser Co · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Weyerhaeuser reported third quarter results with increased Adjusted EBITDA and record Wood Products Adjusted EBITDA.

Weyerhaeuser reported third quarter net earnings of $283 million, or 38 cents per diluted share, on net sales of $2.1 billion. Adjusted EBITDA for the third quarter of 2020 was $745 million. The company reinitiated a quarterly dividend and implemented a new dividend framework.

  • Achieved net earnings of $283 million, or $0.38 per diluted share
  • Increased Adjusted EBITDA by 93 percent compared with second quarter 2020
  • Highest Wood Products Adjusted EBITDA on record
  • Reinitiates quarterly cash dividend and implements “base plus variable supplemental” dividend framework

Headline financials

Total Revenue

$2.11B

Previous: $1.67B+26.3%
EPS (adj)

$0.52

Previous: $0.08+550.0%
Capital Expenditures

-$41M

Previous: -$42M+2.4%
Free Cash Flow

$242M

Previous: $57M+324.6%
Net Income

$283M

Previous: $99M+185.9%
Operating Income

$510M

Previous: $202M+152.5%
Gross Profit

$720M

Previous: $272M+164.7%
Cash & Equivalents

$787M

Previous: $153M+414.4%
Total Assets

$16.4B

Previous: $16.8B-2.8%

Revenue & EPS history

Weyerhaeuser · Revenue · Quarterly

$2.11B

Q3 2020+26.3%vs Q3 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Weyerhaeuser · $2.22B total across 3 segments · Q3 2020

  • Wood Products
    $1.7B
  • Timberlands
    $452M
  • Real Estate, Energy & Natural Resources
    $69M

Forward guidance

Weyerhaeuser expects fourth quarter earnings and Adjusted EBITDA will be higher than the third quarter in Timberlands. Real Estate, Energy & Natural Resources fourth quarter earnings and Adjusted EBITDA will be lower than the third quarter. Excluding the effect of changes in average sales realizations, the company expects fourth quarter earnings and Adjusted EBITDA will be significantly lower than the third quarter, though both are expected to exceed previous record levels attained in 2018 for Wood Products.

Tailwinds

  • In the West, the company anticipates higher average sales realizations for domestic and Japanese export logs and improved log sales volumes as Oregon harvest activity resumes and salvage operations begin.
  • Weyerhaeuser expects fourth quarter earnings and Adjusted EBITDA will be higher than the third quarter.
  • Both earnings and Adjusted EBITDA are expected to exceed previous record levels attained in 2018.

Headwinds

  • In the South, the company expects slightly higher forestry expense and slightly lower average log sales realizations due to mix.
  • Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be lower than the third quarter due to the timing of real estate transactions and average land basis will decrease due to the mix of properties sold.
  • The company expects a modest seasonal reduction in sales volumes, higher Western and Canadian log costs, and lower operating rates for some product lines due to planned maintenance outages.

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 Q3 2020

Historical avgQ3 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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