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In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 11.9% and 11%, respectively. Its earnings and revenues rose 68.8% and 31% from the year-ago quarter’s reported figures.
It is to be noted that earnings surpassed the consensus mark in each of the trailing nine quarters.
Trend in Estimates
The Zacks Consensus Estimate for Louisiana-Pacific’s second-quarter earnings is pegged at $4.38 per share, suggesting a fall of 7.6% on a year-over-year basis. The consensus estimate for revenues is pegged at $1.26 billion, marking a 4.7% year-over-year decline.
LouisianaPacific Corporation Price and EPS Surprise
Louisiana-Pacific’s earnings and sales are expected to have witnessed a year-over-year decline in the second quarter due to supply chain woes and inflationary pressure, primarily for material and labor. The rising costs of crude oil and derivative chemicals have been inflating the price of resins and overlays. Also, the increasing cost of transporting logs to the mills and higher marketing spends are likely to have put pressure on margins in the second quarter.
LPX projects consolidated adjusted EBITDA for the to-be-reported quarter to be more than $540 million, down from $684 million reported in second-quarter 2021.
Yet, solid Siding business, higher demand for specialty products and its focus on accelerating strategic transformation are likely to have driven growth in the to-be-reported quarter. Also, higher housing and repair/remodel activity, strategic business transformation, effective cash management and inorganic moves are added positives.
During first-quarter earnings call, Louisiana-Pacific projected Siding Solutions revenue growth to be more than 20% from the year-ago quarter’s levels. Also, the company expects OSB revenues to be sequentially low by 7%.
The consensus estimate for the Siding segment’s net sales is pegged at $352 million, indicating an improvement of 21% from the year-ago reported figure. The same for OSB units is pegged at $598 million, suggesting a decline of 23.1% from $778 million in the prior year. The consensus estimate for the EWP business’ net sales is $185 million, which suggests a rise of 17.1% from $158 million a year ago. The same for the South America segment’s net sales is pegged at $83 million, suggesting a rise of 12.2% from $74 million in the prior year.
What the Zacks Model Says
Our proven model predicts an earnings beat for Louisiana-Pacific this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of -1.88%.
EMCOR Group, Inc. (EME - Free Report) reported solid results for second-quarter 2022. The top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year.
EME’s management approved a 15.4% hike in its regular quarterly dividend to 15 cents, payable on Oct 31 to stockholders of record as of Oct 18, 2022. Also, it authorized a new share repurchase program to repurchase up to an additional $500 million of its outstanding common stock.
United Rentals, Inc. (URI - Free Report) posted better-than-expected second-quarter 2022 results. Better fleet productivity on broad-based rental demand in construction and industrial verticals, higher total and rental revenues and stronger pricing helped the company boost profit.
URI also lifted its full-year guidance for total revenues, adjusted EBITDA and free cash flow, given broad-based end-market activity, contractor backlogs, customer sentiment and our visibility through the balance of the year.
Martin Marietta Materials, Inc. (MLM - Free Report) reported impressive second-quarter 2022 results. Earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year, backed by improved pricing across businesses and higher demand.
Despite increased inflationary pressure from rising input costs and a challenging macroeconomic and geopolitical environment, solid execution of its strategic business plan and resilient aggregates-led business drove the result.
Image: Bigstock
Louisiana-Pacific (LPX) Q2 Earnings to Ail From High Costs
(L - Free Report) ouisiana-Pacific Corporation (LPX - Free Report) is slated to report second-quarter 2022 results on Aug 9, before market open.
In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 11.9% and 11%, respectively. Its earnings and revenues rose 68.8% and 31% from the year-ago quarter’s reported figures.
It is to be noted that earnings surpassed the consensus mark in each of the trailing nine quarters.
Trend in Estimates
The Zacks Consensus Estimate for Louisiana-Pacific’s second-quarter earnings is pegged at $4.38 per share, suggesting a fall of 7.6% on a year-over-year basis. The consensus estimate for revenues is pegged at $1.26 billion, marking a 4.7% year-over-year decline.
LouisianaPacific Corporation Price and EPS Surprise
LouisianaPacific Corporation price-eps-surprise | LouisianaPacific Corporation Quote
Factors to Note
Louisiana-Pacific’s earnings and sales are expected to have witnessed a year-over-year decline in the second quarter due to supply chain woes and inflationary pressure, primarily for material and labor. The rising costs of crude oil and derivative chemicals have been inflating the price of resins and overlays. Also, the increasing cost of transporting logs to the mills and higher marketing spends are likely to have put pressure on margins in the second quarter.
LPX projects consolidated adjusted EBITDA for the to-be-reported quarter to be more than $540 million, down from $684 million reported in second-quarter 2021.
Yet, solid Siding business, higher demand for specialty products and its focus on accelerating strategic transformation are likely to have driven growth in the to-be-reported quarter. Also, higher housing and repair/remodel activity, strategic business transformation, effective cash management and inorganic moves are added positives.
During first-quarter earnings call, Louisiana-Pacific projected Siding Solutions revenue growth to be more than 20% from the year-ago quarter’s levels. Also, the company expects OSB revenues to be sequentially low by 7%.
The consensus estimate for the Siding segment’s net sales is pegged at $352 million, indicating an improvement of 21% from the year-ago reported figure. The same for OSB units is pegged at $598 million, suggesting a decline of 23.1% from $778 million in the prior year. The consensus estimate for the EWP business’ net sales is $185 million, which suggests a rise of 17.1% from $158 million a year ago. The same for the South America segment’s net sales is pegged at $83 million, suggesting a rise of 12.2% from $74 million in the prior year.
What the Zacks Model Says
Our proven model predicts an earnings beat for Louisiana-Pacific this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of -1.88%.
Zacks Rank: It currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Few Recent Construction Releases
EMCOR Group, Inc. (EME - Free Report) reported solid results for second-quarter 2022. The top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year.
EME’s management approved a 15.4% hike in its regular quarterly dividend to 15 cents, payable on Oct 31 to stockholders of record as of Oct 18, 2022. Also, it authorized a new share repurchase program to repurchase up to an additional $500 million of its outstanding common stock.
United Rentals, Inc. (URI - Free Report) posted better-than-expected second-quarter 2022 results. Better fleet productivity on broad-based rental demand in construction and industrial verticals, higher total and rental revenues and stronger pricing helped the company boost profit.
URI also lifted its full-year guidance for total revenues, adjusted EBITDA and free cash flow, given broad-based end-market activity, contractor backlogs, customer sentiment and our visibility through the balance of the year.
Martin Marietta Materials, Inc. (MLM - Free Report) reported impressive second-quarter 2022 results. Earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year, backed by improved pricing across businesses and higher demand.
Despite increased inflationary pressure from rising input costs and a challenging macroeconomic and geopolitical environment, solid execution of its strategic business plan and resilient aggregates-led business drove the result.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.