Plum Creek Timber Co., Inc. (PCL) Monday reported an increase in profit for the second-quarter as revenues grew, with both earnings and revenues beating Wall Street estimates. Moving ahead, the company lowered its earnings outlook for the full year.
"Our second quarter results were much as we anticipated despite lower-than-planned harvest volumes in the South," said CEO Rick Holley.
Seattle, Washington-based Plum Creek's second-quarter profit rose to $55 million or $0.31 per share from $46 million or $0.28 per share last year. On average, ten analysts polled by Thomson Reuters expected earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the second quarter grew to $356 million from $303 million last year. Nine analysts had a consensus revenue estimate of $353.73 million for the quarter.
Looking ahead to the third quarter, the company expects earnings of $0.27 to $0.32 per share. Analysts currently expect earnings of $0.46 per share for the quarter.
The company lowered its earnings outlook for 2014 to reflect lower harvest volumes, expectations for slower log price growth, and the anticipated composition of real estate transactions in the second half of the year.
The company now expect earnings of $1.05 to $1.25 per share, against prior outlook of $1.30 to $1.50 per share. Analysts currently expect earnings of $1.39 per share for 2014.
PCL closed Monday's trading at $43.91, up $0.14 or 0.32%, on the NYSE. The stock however dropped $1.21 or 2.76% in after-hours trade.
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