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Louisiana-Pacific (LPX) Beats on Earnings & Revenues in Q4
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Louisiana-Pacific Corporation ((LPX - Free Report) ) reported adjusted earnings per share of 23 cents in the fourth quarter of 2016, beating the Zacks Consensus Estimate of 19 cents by 21.05%.
Net sales of $550 million in the quarter surpassed the Zacks Consensus Estimate of $539.9 million by 1.8%. Also, net sales increased 19% year over year.
Adjusted EBITDA from continuing operations was $85 million in the quarter compared with $34 million in the prior-year quarter.
Oriented Strand Board"OSB"): Sales at the OSB segment increased 34% year over year to $276 million.
In the fourth quarter of 2016, adjusted EBITDA from continuing operations was $74 million compared with $25 million in the fourth quarter of 2015.
Sales volumes were up 15% and sales pricing rose by 16%, driving operating results by $39 million.
Siding Segment: The segment manufactures products under two categories: SmartSide siding products and related accessories, and CanExel siding and other related accessories. These products are used for new constructions, repair and remodeling and outdoor structures such as shed. The segment also produces a limited number of OSB products.
This segment reported a record fourth quarter as sales were up 19.8% to $169 million on a 4% increase in SmartSide average sales prices and 18% rise in volumes.
Volumes increased in the SmartSide siding line due to increased availability of SmartSide siding products, following the conversion of the Swan Valley OSB mill.
During the quarter, the Siding segment recorded adjusted EBITDA of $29 million, higher than $19 million reported in the prior-year quarter.
Engineered Wood Products (“EWP”): The EWP segment makes I-Joists, laminated veneer lumber (LVL), laminated strand lumber (LSL) and other related products. These products are used in residential and commercial flooring and roofing systems.
Engineered Wood Products sales dropped 11% year over year to $66 million in the quarter. Volumes of IJ decreased 14% while that of LVL and LSL were down 12% from the prior-year quarter.
Pricing increased 3% for LVL and LSL and 2% for I-Joists. Adjusted EBITDA from continuing operations was negative $1 million, as compared to adjusted EBITDA of $3 million in the fourth quarter of 2015.
South America: This segment comprises facilities in Chile and Brazil. Segment sales increased 1% year over year to $34 million.
Volumes declined 3% in Chile due to weakened housing demand and 8% in Brazil owing to continued economic recession in the local market. However, on a U.S. dollar basis, pricing was up 3% in Chile and down 6% in Brazil.
Adjusted EBITDA of $4 million was less than $5 million recorded in the fourth quarter of 2015. The decline was primarily due to approximately $3.5 million of costs associated with the construction of the third Chilean mill.
Louisiana-Pacific Corporation Price, Consensus and EPS Surprise
The company’s 2016 adjusted earnings of $1.03 per share surpassed the Zacks Consensus Estimate of 84 cents by 22.6% and compared favorably with the prior-year loss of 60 cents.
Net sales of $2.23 billion in the year missed the Zacks Consensus Estimate of $2.26 billion by 1.3%. However, net sales increased 17.9% year over year.
2017 Outlook
Capital expenditures are projected in the $175–$200 million range.
The company expects to start paying cash taxes in 2017. However, the company doesn't plan to pay cash taxes in Canada yet owing to the net operating losses.
Zacks Rank & Peer Releases
Louisiana-Pacific carries a Zacks Rank #3 (Hold).
D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the first quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 17% and 6.8%, respectively.
KB Home (KBH - Free Report) reported its fourth-quarter2016 numbers wherein earnings surpassed analysts’ expectations by 8.1% and revenues by 2%.
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Louisiana-Pacific (LPX) Beats on Earnings & Revenues in Q4
Louisiana-Pacific Corporation ((LPX - Free Report) ) reported adjusted earnings per share of 23 cents in the fourth quarter of 2016, beating the Zacks Consensus Estimate of 19 cents by 21.05%.
Net sales of $550 million in the quarter surpassed the Zacks Consensus Estimate of $539.9 million by 1.8%. Also, net sales increased 19% year over year.
Adjusted EBITDA from continuing operations was $85 million in the quarter compared with $34 million in the prior-year quarter.
Segmental Analysis
Oriented Strand Board "OSB"): Sales at the OSB segment increased 34% year over year to $276 million.
In the fourth quarter of 2016, adjusted EBITDA from continuing operations was $74 million compared with $25 million in the fourth quarter of 2015.
Sales volumes were up 15% and sales pricing rose by 16%, driving operating results by $39 million.
Siding Segment: The segment manufactures products under two categories: SmartSide siding products and related accessories, and CanExel siding and other related accessories. These products are used for new constructions, repair and remodeling and outdoor structures such as shed. The segment also produces a limited number of OSB products.
This segment reported a record fourth quarter as sales were up 19.8% to $169 million on a 4% increase in SmartSide average sales prices and 18% rise in volumes.
Volumes increased in the SmartSide siding line due to increased availability of SmartSide siding products, following the conversion of the Swan Valley OSB mill.
During the quarter, the Siding segment recorded adjusted EBITDA of $29 million, higher than $19 million reported in the prior-year quarter.
Engineered Wood Products (“EWP”): The EWP segment makes I-Joists, laminated veneer lumber (LVL), laminated strand lumber (LSL) and other related products. These products are used in residential and commercial flooring and roofing systems.
Engineered Wood Products sales dropped 11% year over year to $66 million in the quarter. Volumes of IJ decreased 14% while that of LVL and LSL were down 12% from the prior-year quarter.
Pricing increased 3% for LVL and LSL and 2% for I-Joists. Adjusted EBITDA from continuing operations was negative $1 million, as compared to adjusted EBITDA of $3 million in the fourth quarter of 2015.
South America: This segment comprises facilities in Chile and Brazil. Segment sales increased 1% year over year to $34 million.
Volumes declined 3% in Chile due to weakened housing demand and 8% in Brazil owing to continued economic recession in the local market. However, on a U.S. dollar basis, pricing was up 3% in Chile and down 6% in Brazil.
Adjusted EBITDA of $4 million was less than $5 million recorded in the fourth quarter of 2015. The decline was primarily due to approximately $3.5 million of costs associated with the construction of the third Chilean mill.
Louisiana-Pacific Corporation Price, Consensus and EPS Surprise
Louisiana-Pacific Corporation Price, Consensus and EPS Surprise | Louisiana-Pacific Corporation Quote
2016 Results
The company’s 2016 adjusted earnings of $1.03 per share surpassed the Zacks Consensus Estimate of 84 cents by 22.6% and compared favorably with the prior-year loss of 60 cents.
Net sales of $2.23 billion in the year missed the Zacks Consensus Estimate of $2.26 billion by 1.3%. However, net sales increased 17.9% year over year.
2017 Outlook
Capital expenditures are projected in the $175–$200 million range.
The company expects to start paying cash taxes in 2017. However, the company doesn't plan to pay cash taxes in Canada yet owing to the net operating losses.
Zacks Rank & Peer Releases
Louisiana-Pacific carries a Zacks Rank #3 (Hold).
D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the first quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 17% and 6.8%, respectively.
KB Home (KBH - Free Report) reported its fourth-quarter 2016 numbers wherein earnings surpassed analysts’ expectations by 8.1% and revenues by 2%.
Lennar Corporation (LEN - Free Report) beat expectations on both the counts for the fourth time in a row in the fourth quarter of fiscal 2016.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>