Weyerhaeuser Co. (NYSE: WY) reported third-quarter 2012 results before markets opened this morning. The wood products REIT posted adjusted diluted earnings per share (EPS) of $0.22 on revenues of $1.77 billion. In the same period a year ago, the company reported adjusted EPS of $0.12 on revenues of $1.57 billion. Third-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.18 and $1.79 billion in revenues.

The company’s CEO noted:

As our third quarter performance indicates, the operational improvements within our businesses are demonstrating clear results, and we are capitalizing on an improving housing market to the benefit of our shareholders.

Consensus estimates call for fourth-quarter EPS of $0.15 on revenue of $1.73 billion. For the full year, the consensus estimate for EPS is $0.44 on $6.75 billion in revenues. The company did not provide specific guidance, but did comment on fourth-quarter expectations by segment:

• Timberlands expects comparable earnings to $80 million pretax in the third quarter.
• Wood Products expects lower earnings than $59 million in GAAP pretax in the third quarter due to “seasonal declines in pricing and demand.”
• Cellulose Fibers expects comparable earnings to $78 million pretax in the third quarter.
• Real Estate expects slightly lower earnings to $17 million pretax in third quarter due to higher costs related to more sales closing and lower average margins.

In both the Wood Products and Real Estate groups, the seasonal declines in homebuilding are showing up right on schedule. This is worth bearing in mind when looking at forecasts for homebuilders in the next quarter or two.

Weyerhaeuser’s shares are down 1.4% in premarket trading, at $26.91, in a 52-week range of $15.40 to $28.82. The consensus target price for the shares was around $26.15 before today’s report.

Paul Ausick