Weyerhaeuser to Report Q4 Earnings: What's in Store for the Stock?

Core Viewpoint - Weyerhaeuser Company is expected to report its fourth-quarter 2024 results on January 30, with earnings anticipated to reflect stable or slightly improved performance despite challenges from seasonal slowdowns and global demand uncertainty [1][4]. Earnings Performance - In the last reported quarter, Weyerhaeuser's earnings exceeded the Zacks Consensus Estimate by 150%, while net sales fell short by 3%. Adjusted earnings and net sales decreased by 84.8% and 16.9%, respectively [2]. - The Zacks Consensus Estimate for the upcoming quarter's EPS has risen to 7 cents from 6 cents, indicating a 56.3% decline from the previous year. Revenue is estimated at $1.74 billion, reflecting a 1.7$504.9 million, with adjusted EBITDA declining 12.7% from a year ago to $124.8 million [7]. - The Wood Products segment anticipates a slight revenue increase of 0.3$1,306.1 million, but adjusted EBITDA is expected to decline 36.8% from the previous year to $100.4 million [8]. - In the Real Estate, Energy, and Natural Resources segment, earnings and adjusted EBITDA are projected to decrease by$10 million from the third quarter, with net sales expected to be $74.5 million, down 3.3% year-over-year [9][10]. Market Conditions - Elevated mortgage rates have negatively impacted single-family home construction, which accounts for about 30% of lumber demand, while the repair and remodel market, representing around 40% of demand, has also seen reduced activity [5]. - Commodity pricing has performed slightly better than expected this quarter, providing some support to the company's results [4].