NEW YORK (TheStreet) -- Weyerhaeuser (WY - Get Report) shares are up 2.2% to $33.07 on Thursday after the company raised its quarterly dividend 32% to 29 cents per share payable September 12 to shareholders of record on August 29.
The forest products company also announced today that it has authorized a $700 million share buyback program.
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TheStreet Ratings team rates WEYERHAEUSER CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WEYERHAEUSER CO (WY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, compelling growth in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- WEYERHAEUSER CO has improved earnings per share by 30.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WEYERHAEUSER CO increased its bottom line by earning $0.93 versus $0.72 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus $0.93).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 47.0% when compared to the same quarter one year prior, rising from $198.00 million to $291.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.5%. Since the same quarter one year prior, revenues slightly increased by 4.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- You can view the full analysis from the report here: WY Ratings Report