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

Louisiana-Pacific (NYSE:LPX) announced its earnings results on Wednesday. The building manufacturing company reported $0.40 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.17), FiscalAI reports. The business had revenue of $665.00 million for the quarter, compared to analyst estimates 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 was down 12.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.99 EPS.

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 Up 0.7%

LPX stock traded up $0.52 during mid-day trading on Wednesday, hitting $77.33. 2,151,204 shares of the company were exchanged, compared to its average volume of 1,223,046. The company has a market capitalization of $5.40 billion, a PE ratio of 65.53, a price-to-earnings-growth ratio of 2.50 and a beta of 1.62. The company has a current ratio of 3.26, a quick ratio of 1.48 and a debt-to-equity ratio of 0.20. Louisiana-Pacific has a twelve month low of $66.12 and a twelve month high of $102.86. The firm has a fifty day simple moving average of $75.14 and a 200 day simple moving average of $77.81.

Louisiana-Pacific Announces Dividend

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

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. TD raised their price target on shares of Louisiana-Pacific from $86.00 to $90.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Zacks Research downgraded shares of Louisiana-Pacific from a “hold” rating to a “strong sell” rating in a report on Tuesday, June 30th. TD Securities upgraded Louisiana-Pacific from a “hold” rating to a “buy” rating in a research note on Thursday, May 7th. Bank of America boosted their price target on Louisiana-Pacific from $85.00 to $101.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Finally, Barclays lifted their price target on shares of Louisiana-Pacific from $89.00 to $93.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. Eleven equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Louisiana-Pacific has an average rating of “Moderate Buy” and an average target price of $97.80.

Hedge Funds Weigh In On Louisiana-Pacific

Large investors have recently modified their holdings of the stock. North Ridge Wealth Advisors Inc. bought a new stake in Louisiana-Pacific in the second quarter valued at about $26,000. Los Angeles Capital Management LLC acquired a new stake in Louisiana-Pacific during the fourth quarter valued at approximately $29,000. Larson Financial Group LLC lifted its holdings in Louisiana-Pacific by 291.2% during the 3rd quarter. Larson Financial Group LLC now owns 536 shares of the building manufacturing company’s stock worth $48,000 after buying an additional 399 shares during the last quarter. Garton & Associates Financial Advisors LLC bought a new stake in shares of Louisiana-Pacific in the 4th quarter valued at approximately $58,000. Finally, Danske Bank A S bought a new stake in shares of Louisiana-Pacific in the 3rd quarter valued at approximately $80,000. Institutional investors own 94.73% of the company’s stock.

About Louisiana-Pacific

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.