Weyerhaeuser Company (WY) recently announced its financial results for the third quarter. The company posted earnings of $283 million, or 38 cents per share for the quarter, as compared to $99 million, or 13 cents per share in the comparable period last year. On an adjusted basis, profit was 52 cents per share, versus 8 cents per share last year, and above analysts’ average estimate of 45 cents per share.
Revenue for the quarter came in at $2.11 billion, as compared to $1.67 billion in the same period, a year earlier. The Seattle-based timberlands owner also announced a quarterly dividend of 17 cents per share.
Speaking on the results, Weyerhaeuser Chief Executive Devin Stockfish said the company saw outstanding growth across all its businesses despite severe fires in the Pacific Northwest region, extreme storms in the south, and the continuing coronavirus pandemic. He added that the strong financial performance allowed the company to deliver the biggest operational cash flow in more than a decade.
Stockfish further said housing activity in the United States recovered substantially in the third quarter, driven by an increasing preference for bigger single-family houses in suburbs areas.
Weyerhaeuser said operating cash flow during the quarter jumped to $608 million, highest in nearly 15 years. Chief Financial Officer Russell Hagen said the company utilized significant portion of the credit to improve its balance sheet by reducing debt.
Weyerhaeuser stock hit their 52-week low of around $13 in March following the coronavirus pandemic. However, the stock regained most of its lost value in the subsequent months and currently trading close to pre-pandemic levels. Overall, Weyerhaeuser share price has plummeted around 9 percent on year-to-date basis. At the current trading price, WY’s market value stands at $20.366 billion with a P/E ratio of 41.47.