Goldman Sachs Lowers Estimates On Weyerhaeuser Co. (WY)

Goldman Sachs is lowering its estimates on shares of Weyerhaeuser Co. WY on lower lumber prices. It has a Neutral rating and a $25 price target on shares. In a note to clients, Goldman writes, "Weyerhaeuser (WY) reported breakeven 1Q2011 EPS (excluding a one-time gain of $0.18), below our $0.09 estimate (see Exhibit 1, pg. 3) and consensus of $0.10. WY's operating profit totaled $86 mn vs. our $131 mn estimate as weaker pulp results and higher corporate expense more than offset stronger timberland earnings. WY expects each of its business segments will generate higher operating earnings in 2Q2011 vs. 1Q2011 due to seasonal improvement in demand and pricing." Shares of WY closed at $23.01 on Friday.