WFG Earnings Prediction
The chart below shows how WFG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WFG sees a +2.58% change in stock price 10 days leading up to the earnings, and a +0.09% change 10 days following the report. On the earnings day itself, the stock moves by -0.43%. This data can give you a slight idea of what to expect for the next quarter's release.
WFG Key Earning Data
2024/Q4
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WFG Earnings Analysis
West Fraser Timber Co. Ltd Corporation (WFG.N) Earnings Conference Call
Positive
Adjusted EBITDA Increase: 1. Strong Adjusted EBITDA: West Fraser generated $62 million of adjusted EBITDA in Q3 2024, with a trailing 4-quarter adjusted EBITDA of $630 million, an increase from $561 million at year-end 2023.
Strong Liquidity Position: 2. Robust Liquidity Position: The company reported over $2 billion in total liquidity at the end of the quarter, providing significant financial flexibility for capital allocation.
Cash Flow Management: 3. Improved Cash Flow: Cash flow from operations was $150 million in Q3, with a healthy net cash balance of $463 million, reflecting effective working capital management.
SPF Shipment Guidance Increase: 4. Increased SPF Shipment Guidance: West Fraser expects SPF shipments to exceed the top end of its previous guidance range of 2.6 billion to 2.8 billion board feet for 2024, indicating stronger demand.
Cost Reduction Strategies: 5. Cost Management Initiatives: The company has successfully reduced available capacity by over 800 million board feet since 2022, optimizing operations and improving cost structure.
Negative
Lumber Segment Decline: 1. Lumber Segment Loss: The lumber segment posted an adjusted EBITDA loss of $62 million in Q3 2024, worsening from a $51 million loss in the previous quarter.
EWP EBITDA Decline: 2. Declining EWP EBITDA: The North America Engineered Wood Products segment's adjusted EBITDA fell to $121 million in Q3 from $308 million in Q2 2024, indicating a significant decline in profitability.
Pulp & Paper EBITDA Decline: 3. Pulp & Paper Segment Decline: The Pulp & Paper segment generated only $2 million of adjusted EBITDA in Q3 2024, down from $9 million in the previous quarter, reflecting a downward trend in this segment.
SYP Shipment Decline: 4. SYP Shipment Decrease: Year-to-date shipments of Southern Yellow Pine (SYP) are down more than 10% from 2023, with Q3 shipments down nearly 12% compared to the prior quarter, indicating a significant drop in demand.
Export Duty Impact: 5. Export Duty Expense: The company incurred a $32 million lumber export duty expense in Q3 2024, which negatively impacted overall financial results and reflects ongoing trade challenges.
WFG FAQs
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WFG Earning Call Sentiment
West Fraser Timber Co. Ltd. (WFG) Q3 2024 Earnings Call Transcript
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WFG.N
-1.37%Positive
The earnings call summary reflects challenges, with weak financial performance, declining EBITDA, and market uncertainties. Despite some positive aspects like dividend increase and modernization efforts, the Q&A reveals concerns over demand stabilization, softwood trade uncertainties, and unclear management responses. The negative financial results, especially in the lumber segment, outweigh positive signals, leading to a negative sentiment. The stock price is likely to experience a negative movement, between -2% to -8%, over the next two weeks.
