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Weyerhaeuser Q4 Results Exceed Expectations; Street Says Buy

Timberlands owner Weyerhaeuser Company (NYSE: WY) has reported strong results for the fourth quarter ended December 31, 2021. Robust growth witnessed in net sales drove the overall results of the company.

Shares of the company reacted positively to the earnings and rose 4.7% to close at $39.65 on Friday.

Revenue & Earnings

Weyerhaeuser reported quarterly net sales of $2.21 billion, up 6.9% year-over-year. Further, the figure surpassed the consensus estimate of $2.14 billion.

A year-over-year increase of 4% witnessed in net sales from the wood products segment to $1.72 billion was one of the primary drivers of the overall growth in net revenues for the company.

Further, Weyerhaeuser reported quarterly earnings per share (EPS) of $0.49, which denotes a rise of 2.1% from the prior-year quarter. The figure also topped the consensus estimate of $0.44 per share.

Other Operating Metrics

The company reported an adjusted EBITDA of $674 million compared with $657 million reported in the same period last year.

Notably, the company generated net cash from operations of $494 million in the quarter, which denotes a rise of 11.3% from the prior year.

Management Commentary

The CEO of Weyerhaeuser, Devin W. Stockfish, said, “Our 2021 financial performance was the strongest on record and each of our businesses delivered exceptional results despite persistent operational and market challenges. Our teams delivered the highest Wood Products Adjusted EBITDA on record, captured over $70 million of operational excellence improvements, optimized our timberlands holdings through strategic transactions in Alabama and Washington, and launched our new Natural Climate Solutions business.”

Stock Rating

Wall Street’s Top Analysts have awarded Weyerhaeuser a Strong Buy consensus rating based on 4 unanimous Buys. The average Weyerhaeuser price target of $44.50 implies upside potential of 12.2% from current levels. Shares have gained 23.8% over the past year.

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