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Oct. 25, 2019, 1:31 p.m. EDT

Homebuilder stocks rally, as lumber seller Weyerhaeuser is upbeat on housing market

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By Tomi Kilgore

Shares of home builders were broadly higher Friday, after lumber products seller Weyerhaeuser Co. /zigman2/quotes/200438029/composite WY -1.80% gave an upbeat outlook on the housing market, even though the company reported third-quarter profit and sales that missed expectations. The SPDR S&P Homebuilders ETF /zigman2/quotes/202739297/composite XHB -0.17% rose 1% in afternoon trading, putting it on track to close at a 21-month high, with 22 of 35 components trading higher. "Entering the fourth quarter, our builder customers tell us their demand continues to improve and they intend to maintain strong building activity until winter weather no longer permits," said Weyerhaeuser Chief Executive Devin Stockfish on the post-earnings conference call with analysts, according to a FactSet transcript. "Going into next year, we continue to anticipate increasing momentum in the single-family housing market and a modest growth trajectory for US housing." Separately, Weyerhaeuser reported third-quarter net income of $99 million, or 13 cents a share--8 cents on an adjusted basis--down from $255 million, or 34 cents a share, a year ago, as revenue fell 12.5% to $1.67 billion. That missed consensus analyst estimates for adjusted EPS of 10 cents and revenue of $1.68 billion, according to FactSet. Weyerhaeuser's stock, which rose 0.2% in afternoon trading, has run up 33.6% year to date, while the homebuilders ETF has climbed 42.0% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.01% has advanced 20.7%.

$ 27.84
-0.51 -1.80%
Volume: 1.15M
Aug. 6, 2020 12:16p
P/E Ratio
Dividend Yield
Market Cap
$21.16 billion
Rev. per Employee
US : U.S.: NYSE Arca
$ 50.58
-0.09 -0.17%
Volume: 908,721
Aug. 6, 2020 12:15p
-0.36 -0.01%
Volume: 1.09B
Aug. 6, 2020 12:16p

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