Investing

Earnings Previews: Enterprise Products, Estée Lauder, Weyerhaeuser

Next week promises to be just like the past week, with more than 900 publicly traded companies scheduled to report March quarter earnings. Energy exploration and production companies will be among the industries heavily represented next week. Some top brands like Google, Ferrari, Pfizer and T-Mobile are on deck as well.

Looking ahead to companies reporting earnings after Thursday’s closing bell, we have previewed Amazon, First Solar, Nio and Twitter. Four more stocks reporting results before markets open Friday, AbbVie, AstraZeneca, Chevron and Exxon Mobil, were previewed in a second story also posted Tuesday.

The four companies previewed in this story include one scheduled to report earnings before Friday’s opening bell, along with two others set to report before Monday’s opening bell.

Weyerhaeuser

Lumber and wood products giant Weyerhaeuser Co. (NYSE: WY) is set to report March quarter results before markets open Friday morning. Lumber prices have more than tripled over the past 12 months and homebuilders, home buyers and just about every investor with a pulse has a theory about what’s caused the price hikes, but the short answer is that demand has outrun supply. As the chart indicates, Weyerhaeuser stock nearly doubled over the past 12 months. Since the beginning of 2021, shares are up another 64%. The company is organized as a real estate investment trust (REIT).

Analysts have kept a rein on their enthusiasm, however, with eight of 14 rating the stock a Hold, while six rate the shares as Buy or Strong Buy. The stock already has blown past its consensus price target of $38.50 to trade around $39.75 Thursday morning. At the high target of $46, upside potential in Weyerhaeuser shares is nearly 16%.

The consensus earnings per share (EPS) estimate for the March quarter is $0.91, a year-over-year increase of more than 400%, on sales of $2.52 billion, a jump of 46% year over year. For the full fiscal year, EPS is forecast at $2.45, up 90% year over year.

At the current price, Weyerhaeuser shares trade at 17.0 times expected 2021 earnings, 31.2 times estimated 2022 earnings and 24.0 times estimated 2023 earnings. The stock trades in a 52-week range of $16.05 to $40.56. The high was posted Thursday morning, but shares dropped back to around $39.70. The company pays an annual dividend of $0.68 (yield of 1.71%).