- Weyerhaeuser (NYSE:WY) stock drops 5.1% after Q1 EPS and revenue fall short of consensus estimates.
- Q1 EPS, before special items, of 91 cents misses the average analyst estimate of 92 cents and increased from 48 cents in Q4 2020 and 18 cents in Q1 2020.
- Q1 net sales of $2.51B trails the $2.57B consensus and increased from $2.06B in Q4 and $1.73B in the year-ago quarter.
- Q1 adjusted EBITDA of $1.10B compares with Bloomberg estimate of $1.09B; increased from $657M in Q4 and $413M in Q1 2020.
- Benchmark prices for lumber and OSB reached record levels in Q1, with average sales realizations for lumber up 42% and for OSB up 22% vs. Q4. Q2 benchmark pricing for lumber and OSB is significantly higher than Q1 average, Weyerhaeuser said.
- Q1 results and outlook by segment:
- Timberlands adjusted EBITDA of $172M increased from $167M in Q4; expects Q2 adjusted EBITDA comparable with Q1.
- Real Estate, Energy & Natural Resources adjusted EBITDA of $96M rose from $23M in Q4; expects Q2 earnings and adjusted EBITDA moderately lower than Q1 due to timing of real estate transactions but continues to expect full-year adjusted EBITDA of ~$255M.
- Wood Products Q1 adjusted EBITDA of $889M increased from $530M in Q4; excluding the effect of changes in average sales realizations for lumber and oriented strand board, WY expects Q2 earning and adjusted EBITDA to be significantly higher than Q1.
- Anticipates higher sales volumes for lumber and increased sales realizations for engineered wood products will be partially offset by higher raw material costs, primarily for oriented strand board webstock, and lower operating rates for oriented strand board due to planned maintenance outages.
- Previously (April 30): Weyerhaeuser misses on revenue