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

Key Points

• Louisiana-Pacific missed quarterly earnings expectations: EPS was $0.40 versus the $0.57 consensus, while revenue fell 12.1% year over year to approximately $665 million.
• OSB weakness pressured the outlook: Lower prices and volumes drove second-quarter declines, with the company expecting negative OSB EBITDA of about $45 million in the third quarter and $120 million for the full year if current prices persist.
• Siding remains a bright spot: Management reported normalized channel inventories and improved orders, expects year-over-year siding growth in the third quarter, and is supporting expansion with $320 million in planned capital expenditures and nearly $1 billion in liquidity.

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

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 Price Performance

Shares of NYSE:LPX traded up $0.52 during trading on Wednesday, reaching $77.33. 2,151,204 shares of the company traded hands, compared to its average volume of 1,223,046. The company's 50 day moving average is $75.14 and its two-hundred day moving average is $77.81. The company has a quick ratio of 1.48, a current ratio of 3.26 and a debt-to-equity ratio of 0.20. Louisiana-Pacific has a 52 week low of $66.12 and a 52 week high of $102.86. The firm has a market capitalization of $5.40 billion, a PE ratio of 65.53, a PEG ratio of 2.50 and a beta of 1.62.

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 issued a $0.30 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.20 annualized dividend and a yield of 1.6%. Louisiana-Pacific's payout ratio is currently 101.69%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Virtu Financial LLC acquired a new position in Louisiana-Pacific during the 4th quarter worth about $248,000. Corient Private Wealth LLC increased its position in shares of Louisiana-Pacific by 35.4% during the fourth quarter. Corient Private Wealth LLC now owns 7,459 shares of the building manufacturing company's stock worth $602,000 after acquiring an additional 1,952 shares in the last quarter. Alpine Woods Capital Investors LLC purchased a new stake in Louisiana-Pacific in the 4th quarter valued at $665,000. Empowered Funds LLC bought a new position in shares of Louisiana-Pacific in the fourth quarter valued at approximately $810,000. Finally, Garton & Associates Financial Advisors LLC bought a new position in shares of Louisiana-Pacific during the 4th quarter valued at approximately $58,000. Institutional investors and hedge funds own 94.73% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on LPX shares. Jefferies Financial Group initiated coverage on Louisiana-Pacific in a research note on Tuesday, June 23rd. They issued a "buy" rating and a $93.00 price target on the stock. Bank of America boosted their price objective on Louisiana-Pacific from $85.00 to $101.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Zacks Research downgraded shares of Louisiana-Pacific from a "hold" rating to a "strong sell" rating in a research note on Tuesday, June 30th. Barclays lifted their price target on shares of Louisiana-Pacific from $89.00 to $93.00 and gave the company an "overweight" rating in a report on Tuesday, July 14th. Finally, Oppenheimer cut their price target on Louisiana-Pacific from $115.00 to $107.00 and set an "outperform" rating on the stock in a research note on Thursday, May 7th. Eleven analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $97.80.

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.

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