Core Viewpoint - The market anticipates a year-over-year decline in Weyerhaeuser's earnings due to lower revenues, with a focus on how actual results will compare to these estimates [1][2]. Earnings Expectations - Weyerhaeuser is expected to report quarterly earnings of $0.07 per share, reflecting a year-over-year decrease of 56.3% [3]. - Revenues are projected to be $1.74 billion, down 1.7% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.52% higher in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +2.27% suggests analysts have recently become more optimistic about the company's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy) [8]. - Weyerhaeuser currently holds a Zacks Rank of 1, enhancing the likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Weyerhaeuser exceeded the expected earnings of $0.02 per share by delivering $0.05, resulting in a surprise of +150% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - Weyerhaeuser is positioned as a compelling candidate for an earnings beat, but investors should consider other influencing factors before making investment decisions [16].

Dividend Distribution - Weyerhaeuser Company announced a total dividend distribution of $0.94 per share for 2024, with specific allocations for tax purposes [1][2] - The dividend distributions are categorized as capital gain distributions, which are not eligible for the 20 percent qualified business income deduction under section 199A of the Internal Revenue Code [2] Company Overview - Weyerhaeuser Company is one of the largest private owners of timberlands, controlling approximately 10.5 million acres in the U.S. and managing an additional 14 million acres in Canada [3] - The company has been a leader in sustainability for over a century, managing all its timberlands in compliance with internationally recognized sustainable forestry standards [3] - In 2023, Weyerhaeuser generated $7.7 billion in net sales and employed around 9,300 people [3]

Core Viewpoint - Weyerhaeuser (WY) is experiencing significant selling pressure, with a 9.6% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analysts predicting better earnings than previously expected [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - WY's current RSI reading is 29.9, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. Group 2: Fundamental Analysis - Analysts have raised earnings estimates for WY, with a 5.2% increase in the consensus EPS estimate over the last 30 days, indicating potential price appreciation [6]. - WY holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the likelihood of a near-term turnaround [7].

Company Overview - Weyerhaeuser Company is one of the world's largest private owners of timberlands, controlling approximately 10.5 million acres in the U.S. and 14 million acres in Canada under long-term licenses [4] - The company has been a global leader in sustainability for over a century, managing 100% of its timberlands on a fully sustainable basis in compliance with internationally recognized standards [4] - In 2023, Weyerhaeuser generated $7.7 billion in net sales and employed around 9,300 people [4] Upcoming Financial Results - Weyerhaeuser will release its fourth quarter 2024 results on January 30, 2024, after market close [1] - A live webcast and conference call to discuss the results will be held on January 31, 2024, at 7 a.m. PT (10 a.m. ET) [1] Accessing Information - Investors can access the news release, live webcast, and presentation through the Investor Relations section on the company's website [2] - For joining the conference call, North American participants can dial 877-407-0792, while international participants should call 201-689-8263 [3]

Core Viewpoint - Weyerhaeuser Company is set to invest approximately $500 million to build a new TimberStrand facility in Arkansas, which will significantly expand its engineered wood products capacity in the Southern United States [1][5]. Investment and Facility Details - The construction of the new facility is expected to begin in 2025, with operations starting by 2027 [2]. - The facility will utilize TimberStrand technology and will have an annual production capacity of about 10 million cubic feet, effectively doubling Weyerhaeuser's total North American capacity [3]. - The Monticello facility will source most of its fiber log requirements from Weyerhaeuser timberlands in Arkansas and will include a biomass-fueled cogeneration system to meet its electrical needs and reduce environmental impact [4]. Market and Strategic Positioning - The new facility aims to support a growing market for TimberStrand in the Southern United States and will help expand Weyerhaeuser's customer base amid rising demand in housing and industrial applications [5]. - The investment aligns with the company's long-term sustainability goals and greenhouse gas emissions reduction targets [5]. Financial Projections - Weyerhaeuser anticipates incurring around $500 million in capital expenditures for the facility through 2027, with expectations to generate over $100 million in annual adjusted EBITDA at full capacity [6]. Timberlands Business Expansion - In the second quarter, Weyerhaeuser announced strategic timberland acquisitions in Alabama, covering 84,300 acres for $244 million, with the first transaction closing in Q2 2024 [8]. - These acquisitions are expected to enhance existing operations and generate high cash flow and harvest volumes per acre within the Southern Timberlands business [9]. - Overall, Weyerhaeuser has invested approximately $775 million towards expanding its Timberlands portfolio, aiming for $1 billion in disciplined investments by the end of 2025 [9]. Share Price Performance - Weyerhaeuser's shares have underperformed compared to the Zacks Building Products - Wood industry, with a decline of 3.8% against the industry's growth of 27.2% over the past year [10]. Recent Financial Results - The company reported a decline in both earnings and net sales year-over-year due to lower fee harvest volumes, decreased domestic sales, and increased manufacturing and raw materials costs [11].

Core Points - Weyerhaeuser Company announced a $500 million investment to build a new TimberStrand® facility in Arkansas, expected to create 200 jobs [1][4] - The facility will enhance Weyerhaeuser's engineered wood products capacity by adding approximately 10 million cubic feet of annual production [2][3] - The investment aligns with the company's strategy to support U.S. housing demand and sustainability goals [3][4] Company Overview - Weyerhaeuser is one of the largest private owners of timberlands globally, owning approximately 1.2 million acres in south Arkansas [4] - The new facility will be Weyerhaeuser's third manufacturing site in Arkansas, complementing existing operations in Dierks and Emerson [3] Economic Impact - The investment is seen as a significant boost for the local economy in Southeast Arkansas, strengthening the timber industry [4][6] - Local officials expressed optimism about the job creation and economic growth resulting from the new facility [6][7] Timeline - Construction of the new facility is set to begin in 2025, with operations expected to start in late 2027 [5]

Announces strategic investment to build new TimberStrand® facility in ArkansasSEATTLE, Nov. 18, 2024 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced its plan to invest approximately $500 million to build a new, state-of-the-art TimberStrand® facility near Monticello and Warren, Arkansas, expanding the company's engineered wood products (EWP) capacity in the U.S. South. The facility will have an annual production capacity of approximately 10 million cubic feet, which is comparable to the comp ...

Hossain to replace Russell Hagen, who is retiring at the end of 2024SEATTLE, Nov. 11, 2024 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced the appointment of Paul Hossain as senior vice president and chief development officer, effective January 1, 2025. In this role, he will oversee the company's Real Estate, Energy & Natural Resources segment, including its Natural Climate Solutions business, as well as Business Development and Acquisitions and Divestitures. Hossain currently serves as vice ...

Group 1 - The Hecht Commodity Report is a comprehensive source for commodities analysis, covering over 29 different commodities with various market calls and trading recommendations [1][3] - Lumber is identified as a critical industrial commodity that serves as a barometer for economic health and new housing demand, similar to crude oil and copper [2] Group 2 - The author of the report actively participates in commodities markets, holding positions in futures, options, and commodity equities, which may change frequently [4]

PART I FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Weyerhaeuser Company's unaudited consolidated financial statements for the third quarter and year-to-date periods, highlighting a significant decrease in net earnings Consolidated Financial Highlights | Indicator | Q3 2024 ($M) | Q3 2023 ($M) | YTD 2024 ($M) | YTD 2023 ($M) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,681 | $2,022 | $5,416 | $5,900 | | **Operating Income** | $78 | $353 | $544 | $908 | | **Net Earnings** | $28 | $239 | $315 | $620 | | **Diluted EPS** | $0.04 | $0.33 | $0.43 | $0.85 | Consolidated Balance Sheet Highlights | Account | Sept 30, 2024 ($M) | Dec 31, 2023 ($M) | | :--- | :--- | :--- | | **Total Current Assets** | $1,994 | $2,313 | | **Total Assets** | $16,668 | $16,983 | | **Total Current Liabilities** | $992 | $788 | | **Total Liabilities** | $6,741 | $6,747 | | **Total Equity** | $9,927 | $10,236 | Consolidated Cash Flow Highlights (Year-to-Date) | Cash Flow Activity (YTD) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | | **Net Cash from Operations** | $790 | $1,145 | | **Net Cash from Investing** | $(381) | $(982) | | **Net Cash from Financing** | $(674) | $(571) | | **Net Change in Cash** | $(265) | $(408) | - The company's business is organized into three segments: Timberlands (logs, timber), Real Estate, Energy and Natural Resources (Real Estate & ENR), and Wood Products (lumber, OSB, engineered wood products)[13](index=13&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=16&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS%20%28MD%26A%29) Management discusses financial results, highlighting a significant decline in net sales and earnings driven by lower sales realizations and volumes, covering economic conditions, segment performance, liquidity, and non-GAAP measures [Economic and Market Conditions](index=17&type=section&id=Economic%20and%20Market%20Conditions) The company's performance is heavily influenced by the U.S. housing and repair/remodel markets, which have moderated due to elevated mortgage rates, impacting lumber production - U.S. housing starts for Q3 2024 averaged **1.3 million units**, a **1.1% decrease** from Q2 2024, with single-family starts decreasing **4.1%** to **1.0 million units**[38](index=38&type=chunk) - The Random Lengths Framing Lumber Composite price averaged **$383/MBF** and the OSB Composite averaged **$346/MSF** in Q3 2024[38](index=38&type=chunk) - The company reduced its operating rates in Q3 2024, resulting in a **10.1% decrease** in lumber production from Q2 2024, which includes the indefinite curtailment of the New Bern, North Carolina lumber mill[38](index=38&type=chunk) [Consolidated Results](index=18&type=section&id=Consolidated%20Results) Consolidated net sales for Q3 2024 decreased 17% to $1.68 billion, and net earnings fell 88% to $28 million, primarily due to lower Wood Products sales and an impairment charge Consolidated Financial Performance | Indicator | Q3 2024 ($M) | Q3 2023 ($M) | Change ($M) | YTD 2024 ($M) | YTD 2023 ($M) | Change ($M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,681 | $2,022 | $(341) | $5,416 | $5,900 | $(484) | | **Operating Income** | $78 | $353 | $(275) | $544 | $908 | $(364) | | **Net Earnings** | $28 | $239 | $(211) | $315 | $620 | $(305) | - Q3 2024 net sales decreased by **$341 million (17%)** year-over-year, mainly due to a **$302 million** drop in Wood Products sales from decreased prices and volumes[41](index=41&type=chunk) - Q3 2024 operating income fell by **$275 million (78%)** year-over-year, primarily due to a **$252 million** decrease in consolidated gross margin and a **$10 million** noncash impairment charge for the New Bern lumber mill[31](index=31&type=chunk)[42](index=42&type=chunk) [Segment Results](index=19&type=section&id=Segment%20Results) In Q3 2024, all segments saw declines in operating income, with Timberlands, Real Estate & ENR, and especially Wood Products experiencing significant drops due to lower volumes and sales realizations Segment Net Contribution to Earnings | Segment | Q3 2024 Net Contribution to Earnings ($M) | Q3 2023 Net Contribution to Earnings ($M) | Change ($M) | | :--- | :--- | :--- | :--- | | **Timberlands** | $57 | $78 | $(21) | | **Real Estate & ENR** | $51 | $56 | $(5) | | **Wood Products** | $27 | $277 | $(250) | - Timberlands Q3 2024 net sales to unaffiliated customers decreased by **$23 million (6%)** year-over-year, driven by lower sales volumes and realizations in Western and Southern logs[50](index=50&type=chunk) - Real Estate & ENR Q3 2024 net sales decreased by **$16 million (15%)** year-over-year, as acres sold fell from **25,721 to 17,441** and the average price per acre dropped from **$3,033 to $2,808**[56](index=56&type=chunk)[57](index=57&type=chunk) - Wood Products Q3 2024 net sales decreased by **$302 million (20%)** year-over-year, led by a **$119 million** drop in structural lumber sales and a **$78 million** drop in oriented strand board sales due to lower prices[58](index=58&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2024, Weyerhaeuser maintained a strong liquidity position with $877 million in cash and full availability on its $1.5 billion credit facility, despite decreased cash from operations - The company has **$877 million** in cash and cash equivalents and **$1.5 billion** available on its line of credit as of September 30, 2024[69](index=69&type=chunk) - Year-to-date 2024 net cash from operations decreased by **$355 million** to **$790 million** compared to the prior year, mainly due to lower cash flows from business operations[70](index=70&type=chunk) - The company repurchased **3,962,220 common shares** for approximately **$125 million** year-to-date 2024, with **$127 million** remaining authorized for future repurchases as of September 30, 2024[19](index=19&type=chunk)[77](index=77&type=chunk) - Anticipated capital expenditures for the full year 2024 are approximately **$420 million**[71](index=71&type=chunk) [Performance and Liquidity Measures](index=27&type=section&id=PERFORMANCE%20AND%20LIQUIDITY%20MEASURES) This section details non-GAAP measures, with Adjusted EBITDA for Q3 2024 significantly decreasing to $236 million, primarily driven by the Wood Products segment, and Adjusted FAD also declining Adjusted EBITDA by Segment | Adjusted EBITDA by Segment | Q3 2024 ($M) | Q3 2023 ($M) | YTD 2024 ($M) | YTD 2023 ($M) | | :--- | :--- | :--- | :--- | :--- | | **Timberlands** | $122 | $143 | $413 | $503 | | **Real Estate & ENR** | $77 | $94 | $273 | $253 | | **Wood Products** | $91 | $328 | $500 | $746 | | **Total Adjusted EBITDA** | **$236** | **$509** | **$998** | **$1,373** | Adjusted Funds Available for Distribution (YTD) | Measure | YTD 2024 ($M) | YTD 2023 ($M) | | :--- | :--- | :--- | | **Net Cash from Operations** | $790 | $1,145 | | **Capital Expenditures** | $(267) | $(251) | | **Adjusted FAD** | $498 | $894 | - Net earnings per diluted share before special items was **$0.05** for Q3 2024, compared to reported diluted EPS of **$0.04**, with the adjustment relating to restructuring and impairment charges[86](index=86&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company discloses its exposure to market risk, primarily from changes in interest rates affecting its long-term debt, which had a carrying value of $5.116 billion as of September 30, 2024 Long-Term Debt Maturity | Debt Maturity | Principal Amount ($M) | | :--- | :--- | | **2025** | $210 | | **2026** | $1,022 | | **2027** | $300 | | **2028** | $250 | | **Thereafter** | $3,333 | | **Total** | $5,115 | - The total carrying value of long-term debt obligations as of September 30, 2024, was approximately **$5.1 billion**, with a fair value of approximately **$5.15 billion**[24](index=24&type=chunk)[87](index=87&type=chunk) [Controls and Procedures](index=31&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2024, following the implementation of a new ERP system - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of September 30, 2024[89](index=89&type=chunk) - A new enterprise resource planning (ERP) system was implemented in Q3 2024, leading to modifications in internal controls over financial reporting[90](index=90&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=31&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is not currently a party to any legal proceeding that management believes could have a material adverse effect on its financial condition or results of operations - There are no legal proceedings that are expected to have a material adverse effect on the company's financial statements[26](index=26&type=chunk) [Risk Factors](index=32&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - No material changes to risk factors were reported since the 2023 Annual Report on Form 10-K[92](index=92&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q3 2024, the company repurchased 820,706 shares of common stock for approximately $26 million, with $127 million remaining authorized for future repurchases Common Stock Repurchases (Q3 2024) | Period | Total Shares Purchased | Average Price Paid ($) | | :--- | :--- | :--- | | **July 2024** | 293,051 | $29.33 | | **August 2024** | 279,733 | $30.72 | | **September 2024** | 247,922 | $32.12 | | **Q3 2024 Total** | **820,706** | **$30.64** | - As of September 30, 2024, the company had a remaining authorization of **$127 million** for future stock repurchases[92](index=92&type=chunk) [Other Information](index=32&type=section&id=ITEM%205.%20OTHER%20INFORMATION) During the third quarter of 2024, no director or officer adopted, modified, or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - No directors or officers adopted, modified, or terminated Rule 10b5-1 trading plans during Q3 2024[92](index=92&type=chunk) [Exhibits](index=33&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files