Louisiana-Pacific (NYSE:LPX) Announces Quarterly Earnings Results

Louisiana-Pacific (NYSE:LPX) announced its quarterly earnings results on Wednesday. The building manufacturing company reported $0.40 earnings per share for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.13), FiscalAI reports. The company had revenue of $665.00 million for the quarter, compared to analyst estimates of $667.31 million. Louisiana-Pacific had a net margin of 3.20% and a return on equity of 7.03%. Louisiana-Pacific’s revenue was down 12.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $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 Stock Down 3.5%

NYSE LPX traded down $2.72 during trading hours on Thursday, hitting $74.64. 656,534 shares of the company were exchanged, compared to its average volume of 1,149,049. The company has a quick ratio of 1.48, a current ratio of 3.26 and a debt-to-equity ratio of 0.20. The firm has a market cap of $5.21 billion, a price-to-earnings ratio of 63.38, a PEG ratio of 2.50 and a beta of 1.62. The company has a 50 day moving average of $75.14 and a two-hundred day moving average of $77.81. Louisiana-Pacific has a 52-week low of $66.12 and a 52-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. Shareholders of record on Friday, August 14th will be issued a dividend of $0.30 per share. The ex-dividend date is Friday, August 14th. This represents a $1.20 annualized dividend and a yield of 1.6%. Louisiana-Pacific’s dividend payout ratio is 101.69%.

Trending Headlines about Louisiana-Pacific

Here are the key news stories impacting Louisiana-Pacific this week:

• Positive Sentiment: Truist Financial maintained a “buy” rating and set an $89 price target, implying approximately 18.6% potential upside. Although the target was reduced from $91, the firm remains constructive on LPX. Benzinga analyst rating report
• Positive Sentiment: Barclays retained an “overweight” rating and lowered its target from $93 to $92, still indicating approximately 22.6% upside. This provides some support for the stock despite the reduced target. Benzinga analyst rating report
• Neutral Sentiment: Goldman Sachs raised its price target from $66 to $74 but kept a “sell” rating, suggesting limited upside and continued concerns about LPX’s earnings outlook. Benzinga analyst rating report
• Negative Sentiment: LPX reported second-quarter EPS of $0.40, below the $0.53 consensus estimate and down from $0.99 a year earlier. Revenue of $665 million was slightly below estimates and fell 12.1% year over year, reinforcing concerns about weakening demand and profitability. Louisiana-Pacific earnings report
• Negative Sentiment: The company’s updated guidance was particularly concerning: third-quarter revenue is projected at $460 million-$470 million versus a $684.3 million consensus estimate, while full-year revenue is expected near $1.7 billion compared with analysts’ $2.6 billion forecast. The absence of stated EPS guidance adds uncertainty. Zacks Louisiana-Pacific earnings and guidance report

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on LPX shares. Bank of America lifted their target price on shares of Louisiana-Pacific from $85.00 to $101.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Jefferies Financial Group began coverage on Louisiana-Pacific in a report on Tuesday, June 23rd. They issued a “buy” rating and a $93.00 price objective on the stock. The Goldman Sachs Group raised their target price on Louisiana-Pacific from $66.00 to $74.00 and gave the company a “sell” rating in a report on Thursday. Oppenheimer cut their price target on shares of Louisiana-Pacific from $115.00 to $107.00 and set an “outperform” rating on the stock in a research note on Thursday, May 7th. Finally, DA Davidson reissued a “buy” rating and issued a $114.00 price objective on shares of Louisiana-Pacific in a research note on Tuesday, May 5th. Eleven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Louisiana-Pacific currently has a consensus rating of “Moderate Buy” and a consensus target price of $95.36.

Hedge Funds Weigh In On Louisiana-Pacific

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Shelton Capital Management acquired a new position in shares of Louisiana-Pacific in the 3rd quarter valued at $202,000. Quarry LP boosted its stake in Louisiana-Pacific by 45.4% in the third quarter. Quarry LP now owns 1,701 shares of the building manufacturing company’s stock valued at $151,000 after acquiring an additional 531 shares in the last quarter. Blair William & Co. IL purchased a new position in shares of Louisiana-Pacific during the third quarter worth about $205,000. Geneos Wealth Management Inc. increased its position in shares of Louisiana-Pacific by 2,000.0% during the second quarter. Geneos Wealth Management Inc. now owns 1,050 shares of the building manufacturing company’s stock worth $90,000 after purchasing an additional 1,000 shares in the last quarter. Finally, Headlands Technologies LLC purchased a new stake in shares of Louisiana-Pacific in the 2nd quarter valued at about $164,000. 94.73% of the stock is owned by institutional investors and hedge funds.

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.