Loading...
•
Sep 30, 2020
Weyerhaeuser Q3 2020 Earnings Report
Weyerhaeuser reported third quarter results with increased Adjusted EBITDA and record Wood Products Adjusted EBITDA.
Key Takeaways
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
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...