Louisiana-Pacific Set to Announce Q4 Earnings Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy LPX?
Source: seekingalpha
- Earnings Announcement Date: Louisiana-Pacific (LPX) is set to release its Q4 2023 earnings results on February 17 before market open, with a consensus EPS estimate of -$0.02, reflecting a significant year-over-year decline of 101.9%, indicating substantial profitability challenges ahead.
- Revenue Expectations Decline: Analysts forecast revenue of $588.91 million, down 13.5% year-over-year, highlighting the weakening demand in the building materials sector, which could pose risks to the company's financial stability moving forward.
- Historical Performance Review: Over the past two years, LPX has surpassed EPS estimates 75% of the time and revenue estimates 88% of the time; however, recent estimates have seen one upward revision and six downward revisions, suggesting a cautious market outlook on the company's future performance.
- Market Rating Changes: Oppenheimer has initiated coverage on Louisiana-Pacific with an “Outperform” rating, yet Seeking Alpha's Quant Rating raises concerns about the company's attractiveness, reflecting a divergence in market sentiment regarding its growth potential.
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Analyst Views on LPX
Wall Street analysts forecast LPX stock price to rise
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 93.890
Low
94.00
Averages
104.69
High
117.00
Current: 93.890
Low
94.00
Averages
104.69
High
117.00
About LPX
Louisiana-Pacific Corporation is a provider of building solutions. The Company manufactures engineered wood products that meet the demands of builders, remodelers and homeowners worldwide. It operates through three segments: Siding, Oriented Strand Board (OSB), and LP South America (LPSA). The Siding segment serves diverse end markets with a product portfolio of engineered wood siding, trim, soffit, and fascia, including LP SmartSide Trim & Siding, LP SmartSide ExpertFinish Trim & Siding, LP BuilderSeries Lap Siding, and LP Outdoor Building Solutions. The OSB segment manufactures and distributes OSB structural panel products, including the value-added OSB product portfolio known as LP Structural Solutions. The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Louisiana-Pacific Set to Announce Q4 Earnings Results
- Earnings Announcement Date: Louisiana-Pacific (LPX) is set to release its Q4 2023 earnings results on February 17 before market open, with a consensus EPS estimate of -$0.02, reflecting a significant year-over-year decline of 101.9%, indicating substantial profitability challenges ahead.
- Revenue Expectations Decline: Analysts forecast revenue of $588.91 million, down 13.5% year-over-year, highlighting the weakening demand in the building materials sector, which could pose risks to the company's financial stability moving forward.
- Historical Performance Review: Over the past two years, LPX has surpassed EPS estimates 75% of the time and revenue estimates 88% of the time; however, recent estimates have seen one upward revision and six downward revisions, suggesting a cautious market outlook on the company's future performance.
- Market Rating Changes: Oppenheimer has initiated coverage on Louisiana-Pacific with an “Outperform” rating, yet Seeking Alpha's Quant Rating raises concerns about the company's attractiveness, reflecting a divergence in market sentiment regarding its growth potential.
See More
Louisiana-Pacific Increases Quarterly Dividend by 7.1%
- Dividend Increase: Louisiana-Pacific has declared a quarterly dividend of $0.30 per share, marking a 7.1% increase from the previous $0.28, indicating ongoing improvements in cash flow and profitability, which enhances investor confidence.
- Yield Analysis: The forward yield of 1.27% not only provides shareholders with a stable return but may also attract more income-seeking investors, thereby increasing the stock's market appeal.
- Shareholder Assurance: The dividend will be payable on March 13, with a record date of February 27 and an ex-dividend date also on February 27, ensuring shareholders receive their dividends promptly, further solidifying the relationship between the company and its investors.
- Market Rating: Louisiana-Pacific has been rated as Outperform in new coverage by Oppenheimer, indicating a positive outlook on its future performance, which could drive stock price appreciation and bolster investor confidence.
See More
LP BUILDING SOLUTIONS RAISES QUARTERLY DIVIDEND TO $0.30 PER SHARE
Quarterly Dividend Increase: L.P. Building Solutions has announced an increase in its quarterly dividend to $0.30 per share.
Financial Performance: The decision to raise the dividend reflects the company's strong financial performance and commitment to returning value to shareholders.
See More
Oppenheimer Initiates Outperform Rating on Louisiana-Pacific Corp.
- Coverage Initiation: Oppenheimer initiated coverage of Louisiana-Pacific Corp. (LPX) with an Outperform rating and a $115 price target, indicating the market's undervaluation of its growth potential.
- Growth Outlook: Analyst Tyler Batory highlighted that LPX's engineered wood siding segment represents a sustained growth opportunity within a traditionally cyclical industry, with siding revenue expected to grow about 8% in fiscal 2026 despite challenging macro conditions.
- Margin Expansion: The segment's EBITDA margins are projected to expand to approximately 26% by 2027, driven by improved capacity utilization and the introduction of new offerings, thereby enhancing the company's profitability.
- Valuation Approach: Oppenheimer employs a sum-of-the-parts valuation, applying a 15x multiple on its 2026 siding EBITDA estimate and a 6x multiple on normalized OSB EBITDA, indicating potential for excess cash flow for dividends and share repurchases once market conditions stabilize.
See More
W. Bradley Southern to Step Down as Chairperson and Retire from LP Building Solutions Board
- Retirement Announcement: W. Bradley Southern has announced his retirement from his roles as board and chairperson.
- Impact on Organization: His departure may lead to significant changes in leadership and direction for the organization.
See More
Elwood Capital Partners Acquires 40,000 Shares of LPX Worth $3.55 Million
- New Investment Position: Elwood Capital Partners initiated a new position in Louisiana-Pacific Corporation (LPX) by acquiring 40,000 shares valued at approximately $3.55 million during Q3, indicating confidence in the stock's future potential.
- Asset Management Status: This acquisition brings Elwood's total U.S. equity positions to 19, with an AUM of $163.77 million, demonstrating its ongoing expansion in a diversified investment portfolio.
- Market Performance Analysis: As of Wednesday, LPX shares were priced at $82.55, down 21% over the past year, significantly underperforming the S&P 500's approximately 15% gain during the same period, reflecting market concerns about the company's future profitability.
- Financial Health Status: Despite a drop in adjusted EBITDA from $153 million to $82 million in Q3, the company maintains $1.1 billion in liquidity and positive operating cash flow of $89 million, showcasing the robustness of its financial foundation.
See More
Louisiana-Pacific Set to Announce Q4 Earnings Results
- Earnings Announcement Date: Louisiana-Pacific (LPX) is set to release its Q4 2023 earnings results on February 17 before market open, with a consensus EPS estimate of -$0.02, reflecting a significant year-over-year decline of 101.9%, indicating substantial profitability challenges ahead.
- Revenue Expectations Decline: Analysts forecast revenue of $588.91 million, down 13.5% year-over-year, highlighting the weakening demand in the building materials sector, which could pose risks to the company's financial stability moving forward.
- Historical Performance Review: Over the past two years, LPX has surpassed EPS estimates 75% of the time and revenue estimates 88% of the time; however, recent estimates have seen one upward revision and six downward revisions, suggesting a cautious market outlook on the company's future performance.
- Market Rating Changes: Oppenheimer has initiated coverage on Louisiana-Pacific with an “Outperform” rating, yet Seeking Alpha's Quant Rating raises concerns about the company's attractiveness, reflecting a divergence in market sentiment regarding its growth potential.
See More
Louisiana-Pacific Increases Quarterly Dividend by 7.1%
- Dividend Increase: Louisiana-Pacific has declared a quarterly dividend of $0.30 per share, marking a 7.1% increase from the previous $0.28, indicating ongoing improvements in cash flow and profitability, which enhances investor confidence.
- Yield Analysis: The forward yield of 1.27% not only provides shareholders with a stable return but may also attract more income-seeking investors, thereby increasing the stock's market appeal.
- Shareholder Assurance: The dividend will be payable on March 13, with a record date of February 27 and an ex-dividend date also on February 27, ensuring shareholders receive their dividends promptly, further solidifying the relationship between the company and its investors.
- Market Rating: Louisiana-Pacific has been rated as Outperform in new coverage by Oppenheimer, indicating a positive outlook on its future performance, which could drive stock price appreciation and bolster investor confidence.
See More
LP BUILDING SOLUTIONS RAISES QUARTERLY DIVIDEND TO $0.30 PER SHARE
Quarterly Dividend Increase: L.P. Building Solutions has announced an increase in its quarterly dividend to $0.30 per share.
Financial Performance: The decision to raise the dividend reflects the company's strong financial performance and commitment to returning value to shareholders.
See More
Oppenheimer Initiates Outperform Rating on Louisiana-Pacific Corp.
- Coverage Initiation: Oppenheimer initiated coverage of Louisiana-Pacific Corp. (LPX) with an Outperform rating and a $115 price target, indicating the market's undervaluation of its growth potential.
- Growth Outlook: Analyst Tyler Batory highlighted that LPX's engineered wood siding segment represents a sustained growth opportunity within a traditionally cyclical industry, with siding revenue expected to grow about 8% in fiscal 2026 despite challenging macro conditions.
- Margin Expansion: The segment's EBITDA margins are projected to expand to approximately 26% by 2027, driven by improved capacity utilization and the introduction of new offerings, thereby enhancing the company's profitability.
- Valuation Approach: Oppenheimer employs a sum-of-the-parts valuation, applying a 15x multiple on its 2026 siding EBITDA estimate and a 6x multiple on normalized OSB EBITDA, indicating potential for excess cash flow for dividends and share repurchases once market conditions stabilize.
See More
W. Bradley Southern to Step Down as Chairperson and Retire from LP Building Solutions Board
- Retirement Announcement: W. Bradley Southern has announced his retirement from his roles as board and chairperson.
- Impact on Organization: His departure may lead to significant changes in leadership and direction for the organization.
See More
Elwood Capital Partners Acquires 40,000 Shares of LPX Worth $3.55 Million
- New Investment Position: Elwood Capital Partners initiated a new position in Louisiana-Pacific Corporation (LPX) by acquiring 40,000 shares valued at approximately $3.55 million during Q3, indicating confidence in the stock's future potential.
- Asset Management Status: This acquisition brings Elwood's total U.S. equity positions to 19, with an AUM of $163.77 million, demonstrating its ongoing expansion in a diversified investment portfolio.
- Market Performance Analysis: As of Wednesday, LPX shares were priced at $82.55, down 21% over the past year, significantly underperforming the S&P 500's approximately 15% gain during the same period, reflecting market concerns about the company's future profitability.
- Financial Health Status: Despite a drop in adjusted EBITDA from $153 million to $82 million in Q3, the company maintains $1.1 billion in liquidity and positive operating cash flow of $89 million, showcasing the robustness of its financial foundation.
See More
