Weyerhaeuser Q4 Earnings Beat Estimates, Revenues Lag, Stock Down

Weyerhaeuser Company’s WY shares dropped 0.4% in yesterday’s after-hours trading session after it reported mixed results for fourth-quarter 2024. Its earnings beat the Zacks Consensus Estimate, while net sales missed the same.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.On a year-over-year basis, both metrics declined due to lower fee harvest volumes in the West. In the quarter, domestic sales volumes were moderately higher, while export volumes declined as the company shifted volumes from China to domestic customers. Sales realizations were slightly lower due to product mix, while per-unit log and haul costs remained unchanged. Additionally, distribution results declined compared with the third quarter, impacted by seasonally lower sales volumes.Despite market challenges, the company expanded its timberlands through acquisitions and invested in engineered wood products portfolio in 2024. The company also advanced its Natural Climate Solutions business and improved operational efficiency. Market development and demand for climate solutions continued to grow. WY remains on track to achieve its financial targets by the end of 2025. With a strong balance sheet, the company is well-positioned to navigate market conditions and focus on long-term growth.Weyerhaeuser’s Earnings & Sales DiscussionThe company reported adjusted earnings of 11 cents per share, which surpassed the Zacks Consensus Estimate of 7 cents. The bottom line, however, decreased 31.3% from the year-ago reported figure of 16 cents.Net sales for the quarter were $1.71 billion, which missed the consensus mark of $1.74 billion by 2.1% and declined 3.7% from $1.77 billion reported in the year-ago quarter.Weyerhaeuser Company Price, Consensus and EPS Surprise Weyerhaeuser Company price-consensus-eps-surprise-chart | Weyerhaeuser Company QuoteAdjusted EBITDA was $294 million, down 8.4% from $321 million in the year-ago period.WY’s Segment DetailsTimberlands: Net sales (including inter-segment sales of $138 million) from the segment were $497 million, down from the year-ago figure of $534 million. We expected segment sales to decline 5.4% year over year to $505 million in the quarter. Adjusted EBITDA was $126 million, down from $143 million in the year-ago quarter.Real Estate, Energy and Natural Resources: For the reported quarter, the segment’s net sales amounted to $86 million, up from $77 million a year ago.  We expected segment sales to decrease to $74.5 million in the quarter. Adjusted EBITDA was $76 million, indicating a rise from $67 million reported in the year-ago period.Wood Products: In the fourth quarter, the segment’s sales totaled $1.26 billion, down from $1.30 billion in the year-ago period.  We expected segment sales to grow 0.3% year over year to $1.31 billion in the quarter. Adjusted EBITDA was $161 million, up from $159 million a year ago.2024 Highlights of WYFor the full year, adjusted earnings were 53 cents per share, indicating a decrease of 48% from $1.02 reported in 2023. Revenues were $7.12 billion, which declined 7.2% from $7.67 billion reported a year ago.Adjusted EBITDA of $1.29 billion increased 23.7% from 2023.WY’s Financial HighlightsAs of Dec. 31, 2024, Weyerhaeuser had cash and cash equivalents of $684 million, down from $1.16 billion at the end of 2023. Long-term debt was $4.87 billion at the fourth-quarter end, down from $5.07 billion at 2023 end.Net cash from operations was $218 million for the fourth quarter and $1,008 million for 2024 compared with $288 million and $1,433 million reported in the respective year-ago period.Weyerhaeuser’s Q1 OutlookFor first-quarter 2025, for Timberland, Weyerhaeuser expects earnings and adjusted EBITDA to be approximately $20 million higher than the fourth quarter. In the West, the company anticipates slightly higher fee harvest volumes and per-unit log and haul costs. Sales volumes and realizations are expected to see a moderate increase, mainly for domestic logs. Forestry and road costs are likely to decline due to seasonal factors. In the South, fee harvest volumes, sales realizations, and forestry and road costs are expected to align closely with fourth-quarter results, while per-unit log and haul costs are expected to see a slight increase.In the Real Estate, Energy and Natural Resources segment, Weyerhaeuser expects first-quarter earnings and adjusted EBITDA to be comparable sequentially, primarily due to timing and sales mix in real estate. For 2025, the company anticipates adjusted EBITDA to reach about $350 million.Within the Wood Products segment, Weyerhaeuser expects its first-quarter earnings before special items and adjusted EBITDA to slightly exceed fourth-quarter levels, excluding changes in lumber and oriented strand board prices. It expects higher sales volumes and slightly higher log costs and low unit manufacturing costs in lumber.For OSB, it anticipates moderately higher sales volumes with slightly higher fiber and unit manufacturing costs. For engineered wood products, Weyerhaeuser anticipates a slight increase in sales volumes, while sales realizations are expected to remain steady. Raw material costs, particularly for oriented strand board web stock, are likely to be slightly higher. In the distribution segment, Weyerhaeuser anticipates slightly higher results than the previous quarter.WY’s Zacks Rank & Recent Construction ReleasesWeyerhaeuser currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.NVR, Inc. NVR reported impressive fourth-quarter 2024 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis. The quarterly performance showed strong growth in settlements. Although new orders decreased in the quarter, the average selling price increased.NVR’s new orders decreased 8% from the prior-year quarter’s level to 4,794 units. However, the ASP of new orders increased 4% from the prior-year quarter’s figure to $469,000. On a unit basis, backlog at the end of Dec. 31, 2024, decreased 3% from the prior-year quarter’s figure to 9,953 homes but rose 1% on a dollar basis to $4.79 billion.D.R. Horton, Inc. DHI reported first-quarter fiscal 2025 (ended Dec. 31, 2024) results, with earnings and revenues beating Zacks Consensus Estimate but decreasing on a year-over-year basis. Despite rising home inventories, the supply of affordable homes remains constrained, while favorable demographics continue to drive housing demand.To address affordability challenges and stimulate sales, the company leveraged incentives such as mortgage rate buydowns. Additionally, D.R. Horton focused on offering smaller, affordable floor plans to align with the needs of cost-conscious homebuyers. DHI expects consolidated 2024 revenues to be in the range of $36-$37.5 billion compared with $36.8 billion in fiscal 2023. Homes closed are anticipated to be within 90,000-92,000 units.KB Home KBH reported impressive fourth-quarter fiscal 2024 results, wherein both revenues and earnings surpassed expectations. On a year-over-year basis, both metrics increased, highlighting its resilience in a fluctuating housing market.KBH’s results underscore the effectiveness of its strategy, driven by faster build times and a strong appetite for homeownership despite mortgage rate pressures. However, challenges such as mortgage rate headwinds and potential regulatory shifts could temper the pace of growth. While challenges remain, its strong order book and expanded community count suggest a solid growth trajectory for 2025.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Weyerhaeuser Company (WY): Free Stock Analysis Report KB Home (KBH): Free Stock Analysis Report D.R. Horton, Inc. (DHI): Free Stock Analysis Report NVR, Inc. (NVR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks