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Weyerhaeuser's (WY) Q4 Earnings & Revenues Top Estimates
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Weyerhaeuser Company (WY - Free Report) reported fourth-quarter 2021 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate despite persistent supply-chain challenges and the ongoing pandemic.
Devin W. Stockfish, president and chief executive officer of Weyerhaeuser, stated, “As we enter 2022, we continue to be encouraged by strong demand fundamentals that will drive growth for our businesses and remain focused on creating superior value for shareholders through our unmatched portfolio of assets, industry-leading operating performance, strong ESG foundation and disciplined capital allocation."
Inside the Headlines
For the fourth quarter, the company reported adjusted earnings of 49 cents per share, beating the consensus mark by a penny. The bottom line also increased from the year-ago adjusted figure of 48 cents per share.
Net sales for the quarter came in at $2,206 million, surpassing the consensus mark of $2,129 million. The figure also increased 6.9% from $2,063 million reported in the prior-year quarter.
For the fourth quarter, adjusted EBITDA came in at $674 million, up from $657 million in the year-ago period.
Weyerhaeuser Company Price, Consensus and EPS Surprise
Timberlands: Net sales (including inter-segment sales of $136 million) from the segment came in at $565 million, up 12.5% from the year-ago figure of $502 million.
In the West, fee-harvest volumes were higher sequentially, and per unit log and haul costs decreased. Export-sales realizations increased from the third quarter and domestic sales realizations were sequentially comparable. In the South, sales realizations for sawlogs and fiber logs improved, and fee-harvest volumes increased slightly. Per unit log and haul costs grew slightly on a sequential basis, given higher transportation costs.
Adjusted EBITDA came in at $176 million, up from $167 million in the year-ago quarter.
Real Estate, Energy and Natural Resources: For the fourth quarter, the segment’s net sales amounted to $59 million, up from $30 million a year ago. Also, adjusted EBITDA came in at $49 million, reflecting an increase from $23 million a year ago. Sequentially, earnings and adjusted EBITDA were down due to lower real estate sales. The number of real estate acres sold decreased due to the timing of real estate transactions, partially offset by an increase in the average price per acre due to the mix of properties sold.
Wood Products: For the third quarter, segment sales totaled $1,718 million, up 4% from $1,652 million in the prior-year period. Adjusted EBITDA came in at $517 million, down from $530 million a year ago.
For the fourth quarter, sales realizations for lumber grew 15% on a sequential basis. Yet, the same for oriented strand board or OSB plummmeted 29% from the third quarter. Sales volumes were lower significantly for lumber and modestly declined for OSG from their respective third-quarter levels. Raw material costs for engineered wood products or EWP dropped sequentially but sales realization for EWP improved.
2021 Highlights
Adjusted earnings came in at $3.37 per share, reflecting an increase of 161.2% from $1.29 reported in 2020. Revenues were $10.2 billion versus $7.35 billion in 2020. Adjusted EDITDA of $4.09 billion increased 86% from 2020.
Financial Highlights
As of Dec 31, 2021, Weyerhaeuser had cash and cash equivalents of $1.88 billion, up from $495 million at 2020-end. The long-term debt was $5.1 billion million at quarter-end, down from $5.33 billion at 2020-end.
Net cash from operations was $3.16 billion for 2021 compared with $1.53 billion in the year-ago period.
Outlook
For first-quarter 2022, the company expects earnings and adjusted EBITDA in the Timberland segment to be higher than fourth-quarter 2021. In the West, it expects higher fee-harvest volumes, domestic sales realizations, slightly improved export-sales realization, and forestry and road costs. It also expects per unit log and haul costs to decline moderately sequentially. In the South, the company expects sales realizations to be in line with fourth-quarter 2021. It also anticipates seasonally lower forestry and road costs in the region. Meanwhile, WY expects marginally lower fee-harvest volumes and higher per unit log and haul costs.
In the Real Estate, Energy and Natural Resources segment, Weyerhaeuser anticipates earnings and adjusted EBITDA to be higher than fourth-quarter 2021. For 2022, it expects adjusted EBITDA to be $300 million.
Within the Wood Products segment, the company predicts earnings and adjusted EBITDA to be in line with fourth-quarter 2021.
Zacks Rank
Weyerhaeuser currently carries a Zacks Rank #1 (Strong Buy).
Toll Brothers Inc. (TOL - Free Report) currently sports a Zacks Rank #1. This Horsham, PA-based luxury homebuilder builds single-family detached and attached home communities; master-planned luxury residential resort-style golf communities; and urban low, mid, and high-rise communities, principally on the land it develops and improves. It has been benefiting from the strategy of broadening product lines, price points and geographies.
Toll Brothers’ earnings for fiscal 2022 are expected to rise 49.9% year over year.
KB Home (KBH - Free Report) currently carries a Zacks Rank #1. Robust backlog level, a strong lineup of community openings and solid return-focused growth model will help KB Home generate as much as $7.6 billion in housing revenues and double-digit operating margin in fiscal 2022.
KB Home’s earnings are expected to rise 67.9% year over year in fiscal 2022.
Quanta Services, Inc. (PWR - Free Report) currently carries a Zacks Rank #2 (Buy). Based in Houston, TX, Quanta is gaining from a three-pronged growth strategy focusing on the timely delivery of projects to exceed customer expectations, leverage core business to expand in complementary adjacent service lines and enable the continuation of exploring new service lines. Overall, the company’s engineering and project management capabilities allow it to capitalize on the market trends that are currently skewed toward the engineering, procurement, and construction or EPC model.
Quanta’s earnings are expected to grow 28.3% in 2022.
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Weyerhaeuser's (WY) Q4 Earnings & Revenues Top Estimates
Weyerhaeuser Company (WY - Free Report) reported fourth-quarter 2021 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate despite persistent supply-chain challenges and the ongoing pandemic.
Devin W. Stockfish, president and chief executive officer of Weyerhaeuser, stated, “As we enter 2022, we continue to be encouraged by strong demand fundamentals that will drive growth for our businesses and remain focused on creating superior value for shareholders through our unmatched portfolio of assets, industry-leading operating performance, strong ESG foundation and disciplined capital allocation."
Inside the Headlines
For the fourth quarter, the company reported adjusted earnings of 49 cents per share, beating the consensus mark by a penny. The bottom line also increased from the year-ago adjusted figure of 48 cents per share.
Net sales for the quarter came in at $2,206 million, surpassing the consensus mark of $2,129 million. The figure also increased 6.9% from $2,063 million reported in the prior-year quarter.
For the fourth quarter, adjusted EBITDA came in at $674 million, up from $657 million in the year-ago period.
Weyerhaeuser Company Price, Consensus and EPS Surprise
Weyerhaeuser Company price-consensus-eps-surprise-chart | Weyerhaeuser Company Quote
Segment Details
Timberlands: Net sales (including inter-segment sales of $136 million) from the segment came in at $565 million, up 12.5% from the year-ago figure of $502 million.
In the West, fee-harvest volumes were higher sequentially, and per unit log and haul costs decreased. Export-sales realizations increased from the third quarter and domestic sales realizations were sequentially comparable. In the South, sales realizations for sawlogs and fiber logs improved, and fee-harvest volumes increased slightly. Per unit log and haul costs grew slightly on a sequential basis, given higher transportation costs.
Adjusted EBITDA came in at $176 million, up from $167 million in the year-ago quarter.
Real Estate, Energy and Natural Resources: For the fourth quarter, the segment’s net sales amounted to $59 million, up from $30 million a year ago. Also, adjusted EBITDA came in at $49 million, reflecting an increase from $23 million a year ago. Sequentially, earnings and adjusted EBITDA were down due to lower real estate sales. The number of real estate acres sold decreased due to the timing of real estate transactions, partially offset by an increase in the average price per acre due to the mix of properties sold.
Wood Products: For the third quarter, segment sales totaled $1,718 million, up 4% from $1,652 million in the prior-year period. Adjusted EBITDA came in at $517 million, down from $530 million a year ago.
For the fourth quarter, sales realizations for lumber grew 15% on a sequential basis. Yet, the same for oriented strand board or OSB plummmeted 29% from the third quarter. Sales volumes were lower significantly for lumber and modestly declined for OSG from their respective third-quarter levels. Raw material costs for engineered wood products or EWP dropped sequentially but sales realization for EWP improved.
2021 Highlights
Adjusted earnings came in at $3.37 per share, reflecting an increase of 161.2% from $1.29 reported in 2020. Revenues were $10.2 billion versus $7.35 billion in 2020. Adjusted EDITDA of $4.09 billion increased 86% from 2020.
Financial Highlights
As of Dec 31, 2021, Weyerhaeuser had cash and cash equivalents of $1.88 billion, up from $495 million at 2020-end. The long-term debt was $5.1 billion million at quarter-end, down from $5.33 billion at 2020-end.
Net cash from operations was $3.16 billion for 2021 compared with $1.53 billion in the year-ago period.
Outlook
For first-quarter 2022, the company expects earnings and adjusted EBITDA in the Timberland segment to be higher than fourth-quarter 2021. In the West, it expects higher fee-harvest volumes, domestic sales realizations, slightly improved export-sales realization, and forestry and road costs. It also expects per unit log and haul costs to decline moderately sequentially. In the South, the company expects sales realizations to be in line with fourth-quarter 2021. It also anticipates seasonally lower forestry and road costs in the region. Meanwhile, WY expects marginally lower fee-harvest volumes and higher per unit log and haul costs.
In the Real Estate, Energy and Natural Resources segment, Weyerhaeuser anticipates earnings and adjusted EBITDA to be higher than fourth-quarter 2021. For 2022, it expects adjusted EBITDA to be $300 million.
Within the Wood Products segment, the company predicts earnings and adjusted EBITDA to be in line with fourth-quarter 2021.
Zacks Rank
Weyerhaeuser currently carries a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Top-Ranked Stocks in Construction Sector
Toll Brothers Inc. (TOL - Free Report) currently sports a Zacks Rank #1. This Horsham, PA-based luxury homebuilder builds single-family detached and attached home communities; master-planned luxury residential resort-style golf communities; and urban low, mid, and high-rise communities, principally on the land it develops and improves. It has been benefiting from the strategy of broadening product lines, price points and geographies.
Toll Brothers’ earnings for fiscal 2022 are expected to rise 49.9% year over year.
KB Home (KBH - Free Report) currently carries a Zacks Rank #1. Robust backlog level, a strong lineup of community openings and solid return-focused growth model will help KB Home generate as much as $7.6 billion in housing revenues and double-digit operating margin in fiscal 2022.
KB Home’s earnings are expected to rise 67.9% year over year in fiscal 2022.
Quanta Services, Inc. (PWR - Free Report) currently carries a Zacks Rank #2 (Buy). Based in Houston, TX, Quanta is gaining from a three-pronged growth strategy focusing on the timely delivery of projects to exceed customer expectations, leverage core business to expand in complementary adjacent service lines and enable the continuation of exploring new service lines. Overall, the company’s engineering and project management capabilities allow it to capitalize on the market trends that are currently skewed toward the engineering, procurement, and construction or EPC model.
Quanta’s earnings are expected to grow 28.3% in 2022.