Louisiana-Pacific (NYSE:LPX) Announces Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Louisiana-Pacific (NYSE:LPX) posted its earnings results on Wednesday. The building manufacturing company reported $0.40 earnings per share for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.17), FiscalAI reports. The firm had revenue of $665.00 million for the quarter, compared to analysts’ expectations of $667.31 million. Louisiana-Pacific had a return on equity of 7.03% and a net margin of 3.20%.The business’s revenue for the quarter was down 12.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.99 earnings per share.

Here are the key takeaways from Louisiana-Pacific’s conference call:

• Second-quarter results declined year over year: net sales fell to $664 million and EBITDA to $79 million, primarily because weaker OSB prices and volumes offset siding pricing gains.
• Management said siding channel inventories have normalized, order intake has improved, and it expects siding to return to year-over-year volume and revenue growth in the third quarter while reaffirming full-year siding guidance.
• The OSB outlook deteriorated as prices declined about 6% since the May call; LP now expects approximately negative $45 million of OSB EBITDA in Q3 and negative $120 million for the full year, assuming current prices persist.
• LP continues to report long-term SmartSide share gains and is expanding ExpertFinish capacity through projects in Green Bay, Bath, New York, and North Branch, Minnesota.
• Full-year capital expenditures were reduced by $70 million to approximately $320 million, while LP ended the quarter with nearly $1 billion of liquidity, providing flexibility to prioritize siding growth despite OSB volatility.

Louisiana-Pacific Trading Up 0.7%

Shares of NYSE LPX traded up $0.52 during trading on Wednesday, reaching $77.33. The stock had a trading volume of 2,151,204 shares, compared to its average volume of 1,223,046. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.48 and a current ratio of 3.26. The company has a market cap of $5.40 billion, a P/E ratio of 65.53, a PEG ratio of 2.50 and a beta of 1.62. The business’s 50-day moving average price is $75.14 and its 200-day moving average price is $77.81. Louisiana-Pacific has a fifty-two week low of $66.12 and a fifty-two week high of $102.86.

Louisiana-Pacific Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, August 14th. Louisiana-Pacific’s payout ratio is 101.69%.

Analyst Upgrades and Downgrades

LPX has been the subject of several research reports. Jefferies Financial Group assumed coverage on shares of Louisiana-Pacific in a research note on Tuesday, June 23rd. They issued a “buy” rating and a $93.00 price target for the company. Barclays increased their price target on Louisiana-Pacific from $89.00 to $93.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. Truist Financial lowered their price objective on shares of Louisiana-Pacific from $93.00 to $91.00 and set a “buy” rating for the company in a research report on Wednesday, July 15th. Oppenheimer decreased their price target on Louisiana-Pacific from $115.00 to $107.00 and set an “outperform” rating for the company in a research note on Thursday, May 7th. Finally, Zacks Research lowered shares of Louisiana-Pacific from a “hold” rating to a “strong sell” rating in a report on Tuesday, June 30th. Eleven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $97.80.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Boston Partners purchased a new position in Louisiana-Pacific in the third quarter valued at about $100,770,000. Parsifal Capital Management LP purchased a new position in shares of Louisiana-Pacific in the 3rd quarter valued at $46,161,000. Morgan Stanley lifted its position in shares of Louisiana-Pacific by 68.1% during the fourth quarter. Morgan Stanley now owns 964,411 shares of the building manufacturing company’s stock worth $77,886,000 after purchasing an additional 390,808 shares in the last quarter. Maple Rock Capital Partners Inc. raised its position in shares of Louisiana-Pacific by 143.9% in the 4th quarter. Maple Rock Capital Partners Inc. now owns 588,868 shares of the building manufacturing company’s stock valued at $47,557,000 after purchasing an additional 347,400 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its holdings in Louisiana-Pacific by 23.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,723,824 shares of the building manufacturing company’s stock worth $139,218,000 after buying an additional 332,794 shares during the last quarter. Institutional investors and hedge funds own 94.73% of the company’s stock.

Louisiana-Pacific Company Profile

Louisiana-Pacific Corporation (NYSE: LPX) is a leading manufacturer of building materials and engineered wood products for residential, industrial and light commercial construction. The company produces a diverse portfolio of products, including oriented strand board (OSB), engineered wood siding, trim, molding, sheathing panels and subflooring. Its flagship product lines, such as LP® SmartSide® trim and siding, are designed to offer enhanced durability, moisture resistance and ease of installation, helping builders and homeowners achieve long-lasting performance in a variety of climates.

Founded in 1973 as a spin-off from Georgia-Pacific, Louisiana-Pacific established its reputation by pioneering innovative manufacturing techniques for OSB, becoming one of the first companies to bring the product to market in the 1980s.