Weyerhaeuser Company WY is slated to report fourth-quarter 2024 results on Jan. 30, after the closing bell.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 150% but net sales missed the same by 3%. Quarterly adjusted earnings and net sales for the quarter decreased 84.8% and 16.9%, respectively.

Weyerhaeuser’s earnings beat the consensus mark in three of the last four quarters and missed on one occasion, with the average surprise being 41.6%.

How Are Estimates Placed for Weyerhaeuser Stock?

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) has increased to 7 cents from 6 cents over the past 30 days. The estimated figure indicates a decrease of 56.3% from the year-ago level.

The consensus mark for revenues is pegged at $1.74 billion, indicating a 1.7% year-over-year decline.

Weyerhaeuser Company Price and EPS Surprise

Weyerhaeuser Company price-eps-surprise | Weyerhaeuser Company Quote

Factors Influencing WY’s Q4 Results

Weyerhaeuser's fourth-quarter 2024 results are expected to reflect stable or slightly improved earnings and adjusted EBITDA, though seasonal slowdowns and global demand uncertainty remain challenges. Yet, commodity pricing performed slightly better than expected this quarter.

Elevated mortgage rates have softened single-family home construction, which constitutes about 30% of the end-market demand for lumber, thus reducing housing demand. The repair & remodel market, which represents around 40% of end-market demand for lumber, also experienced reduced demand, likely affecting the company's quarterly results.

Segment-wise, the company expects its Timberlands earnings and adjusted EBITDA to align with the third quarter of 2024. In the West, lower log and haul costs, reduced harvest volumes, and lower sales realizations are expected. In the South, fee harvest volumes and log costs will likely rise while sales realizations remain stable, with higher forestry and road costs.

We expect the Timberland segment net sales (which accounted for 29.3% of third-quarter net sales) to drop 5.4% year over year but up 2.4% sequentially to $504.9 million. Adjusted EBITDA is expected to decline 12.7% from a year ago but up 2.3% sequentially to $124.8 million.

For the Wood Products segment, Weyerhaeuser expects fourth-quarter earnings and adjusted EBITDA to slightly exceed the third quarter, with higher lumber sales, lower log, and unit manufacturing costs.

Our model predicts Wood Products segment’s revenues (which accounted for approximately 73.5% of third-quarter 2024 revenues) to grow slightly by 0.3% year over year and 5.8% sequentially to $1,306.1 million in the quarter. Adjusted EBITDA is expected to decline 36.8% from a year ago and 10.4% sequentially to $100.4 million.

Meanwhile, in the Real Estate, Energy and Natural Resources segment, Weyerhaeuser expects fourth-quarter earnings and adjusted EBITDA to drop by $10 million from the third quarter, primarily due to the timing and mix of real estate sales.

Our model predicts the Real Estate, Energy and Natural Resources segment’s (which accounted for 5.3% of third-quarter net sales) net sales to be $74.5 million, down 3.3% year over year and 16.3% sequentially. Adjusted EBITDA is expected to be up 1% from a year ago but down 12.1% sequentially to $67.6 million.

What the Zacks Model Unveils for WY

Our proven model predicts an earnings beat for Weyerhaeuser this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Currently, WY has an Earnings ESP of +1.01% and sports a Zacks Rank #1.

Other Stocks With Favorable Combination

Here are some other companies in the Zacks Construction sector, which, according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.

Frontdoor FTDR currently has an Earnings ESP of +60.00% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

FTDR’s earnings topped the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 269%. Earnings for the to-be-reported quarter are expected to decrease 45% year over year.

Louisiana-Pacific LPX currently has an Earnings ESP of +11.79% and a Zacks Rank of 2.

LPX’s earnings for the to-be-reported quarter are expected to grow 4.2%. The company reported better-than-expected earnings in all the last four quarters, the average surprise being 30.7%.

PulteGroup PHM currently has an Earnings ESP of +2.36% and a Zacks Rank of 3.

PHM’s earnings for the to-be-reported quarter are expected to decrease 2.1%. The company reported better-than-expected earnings in all the last four quarters, the average surprise being 10.9%.

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Weyerhaeuser Company (WY) : Free Stock Analysis Report

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