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Louisiana-Pacific (LPX) Q2 Earnings & Sales Beat, Up Y/Y

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Louisiana-Pacific Corporation (LPX - Free Report) posted second-quarter 2018 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Shares were up 0.9% in the pre-market trading session following the earnings release.

The company reported adjusted earnings per share of $1.08 in the quarter, beating the consensus mark of 97 cents by 11.3%. Earnings improved considerably from the year-ago figure of 58 cents. The upside can be attributed to strong operational execution across the business, higher oriented strand board (OSB) pricing as well as ongoing growth in its value-added products. In fact, the reported quarter marked the company’s best second quarter since 2004. Each business — Siding, OSB, Engineered Wood and South America operations — reported higher earnings and revenues year over year.

Net sales of $810.8 million in the quarter surpassed the consensus mark of $788.6 million. Net sales increased 16.8% year over year.

Adjusted EBITDA from continuing operations was $242 million in the quarter, up 44.9% from $167 million in the prior-year quarter.

Segmental Analysis

OSB: Sales at the OSB segment increased 19.2% year over year to $387.4 million. In the second quarter, adjusted EBITDA increased 44.9% from the second quarter of 2017.

Siding Segment: This segment’s sales were up 13.2% to $261.6 million owing to higher volumes.

In the quarter under review, the Siding segment recorded adjusted EBITDA of $71 million, reflecting an increase of $14 million from the second quarter of 2017.

Engineered Wood Products (EWP): EWP sales grew 15.8% year over year to $109.1 million in the quarter, owing to higher volumes of LSL products.

Adjusted EBITDA increased $4 million from the prior-year quarter.

South America: This segment comprises facilities in Chile, Brazil, as well as sales offices in Peru and Argentina. The segment sales improved 17.1% year over year to $45.3 million.

Adjusted EBITDA was $12 million compared with $8 million in second-quarter 2017.

Other: Net sales were $7.4 million in the quarter compared with $7.1 million a year ago.

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Financials

Louisiana-Pacific ended the quarter with cash and cash equivalents of $1,000.9 million as of Jun 30, 2018 compared with $928 million on Dec 31, 2017. Long-term debt (excluding current portion) was $348.4 million, down from $350.8 million at the end of 2017.

Zacks Rank & Other Peer Releases

Currently, Louisiana-Pacific sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Weyerhaeuser Company (WY - Free Report) reported better-than-expected results in the second quarter of 2018, with earnings and sales surpassing estimates by 7.3% and 3.5%, respectively, buoyed by strong housing market fundamentals.

Universal Forest Products, Inc. (UFPI - Free Report) reported mixed results in the second quarter of 2018, wherein earnings missed the Zacks Consensus Estimate while sales beat the same. Quarterly earnings and revenues improved on a year-over-year basis, propelled by healthy contribution from three segments.

Rayonier Inc. (RYN - Free Report) reported second-quarter 2018 net income per share of 28 cents, comfortably beating the Zacks Consensus Estimate of 20 cents. Further, the bottom line was higher than the prior-year figure of 20 cents.

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