Scotiabank Research Analysts Cut Earnings Estimates for WFG

West Fraser Timber Co. Ltd. (NYSE:WFG) – Scotiabank reduced their Q3 2024 EPS estimates for shares of West Fraser Timber in a note issued to investors on Monday, October 21st. Scotiabank analyst B. Isaacson now expects that the company will earn ($0.45) per share for the quarter, down from their prior estimate of ($0.16). The consensus estimate for West Fraser Timber’s current full-year earnings is $2.03 per share.

West Fraser Timber (NYSE:WFG) last announced its quarterly earnings results on Wednesday, July 24th. The company reported $1.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.09). West Fraser Timber had a net margin of 2.23% and a return on equity of 3.83%. The company had revenue of $1.71 billion for the quarter, compared to the consensus estimate of $1.59 billion. During the same period last year, the firm posted ($0.03) earnings per share. The company’s revenue for the quarter was up 6.0% compared to the same quarter last year.

A number of other brokerages have also commented on WFG. BMO Capital Markets lifted their price target on West Fraser Timber from $105.00 to $115.00 and gave the company an “outperform” rating in a research note on Tuesday. Royal Bank of Canada lifted their target price on shares of West Fraser Timber from $97.00 to $100.00 and gave the stock an “outperform” rating in a research report on Friday, July 26th. Four research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, West Fraser Timber currently has an average rating of “Buy” and a consensus price target of $107.60.

West Fraser Timber Stock Performance

NYSE WFG opened at $95.50 on Thursday. The stock has a market cap of $7.45 billion, a PE ratio of 61.22 and a beta of 1.16. West Fraser Timber has a fifty-two week low of $64.11 and a fifty-two week high of $102.40. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.49 and a current ratio of 2.33. The firm’s fifty day moving average price is $92.71 and its two-hundred day moving average price is $84.32.

West Fraser Timber Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, October 11th. Stockholders of record on Thursday, September 26th were issued a $0.237 dividend. This represents a $0.95 dividend on an annualized basis and a dividend yield of 0.99%. The ex-dividend date was Thursday, September 26th. West Fraser Timber’s payout ratio is 60.90%.

Institutional Investors Weigh In On West Fraser Timber

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in shares of West Fraser Timber by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 2,813,970 shares of the company’s stock valued at $240,820,000 after acquiring an additional 28,399 shares in the last quarter. 1832 Asset Management L.P. raised its stake in West Fraser Timber by 18.4% during the second quarter. 1832 Asset Management L.P. now owns 989,374 shares of the company’s stock valued at $76,053,000 after buying an additional 153,600 shares during the last quarter. Van Lanschot Kempen Investment Management N.V. raised its position in shares of West Fraser Timber by 15.2% in the 2nd quarter. Van Lanschot Kempen Investment Management N.V. now owns 692,453 shares of the company’s stock worth $53,229,000 after purchasing an additional 91,490 shares during the last quarter. Thrivent Financial for Lutherans bought a new position in West Fraser Timber in the 2nd quarter worth about $52,645,000. Finally, Vontobel Holding Ltd. increased its holdings in shares of West Fraser Timber by 7.5% in the 3rd quarter. Vontobel Holding Ltd. now owns 571,583 shares of the company’s stock worth $55,683,000 after purchasing an additional 39,651 shares in the last quarter. Hedge funds and other institutional investors own 40.23% of the company’s stock.

West Fraser Timber Company Profile

West Fraser Timber Co Ltd., a diversified wood products company, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals and renewable energy. It offers spruce-pine-fir, douglas fir-larch, hem-fir, and southern yellow pine lumber, treated wood products, medium density fiberboard panels and plywood, oriented strand board, and laminated veneer lumber wood products, as well as particleboards.