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Housing Recovery to Aid Louisiana-Pacific (LPX) Q3 Earnings?
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Louisiana-Pacific Corporation (LPX - Free Report) is slated to report third-quarter 2020 results on Nov 3, before the market opens.
In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 138.9% and 0.9%, respectively. Also, earnings grew 290.9% but revenues dropped 6.8% from the respective year-ago reported figures.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for Louisiana-Pacific’s third-quarter earnings is pegged at $1.49 per share, implying growth from 8 cents a year ago. The consensus estimate for revenues is $773 million, indicating 28.2% year-over-year growth.
Factors at Play
Louisiana-Pacific’s earnings and sales are expected to have increased in the third quarter. As the company’s performance is highly influenced by the housing market, solid rebound of the same is expected to benefit the upcoming results. Solid demand for new housing across the United States is likely to have helped the company support the entire mix of businesses to some extent.
However, it expects manufacturing or customer disruptions caused by the COVID outbreak to still materially impact third-quarter results. As announced during second-quarter earnings call, for for the Oriented Strand Board or OSB business, the company expects to produce and sell roughly 900 million square feet of OSB in the third quarter, factoring in the necessary downtime for preventative maintenance. This will be roughly 8% lower than the year ago, largely due to the idling of Peace Valley midway through the quarter last year.
Meanwhile, the order book for SmartSide strand has been strong and the company expects to post revenue growth in high-single digits for SmartSide in the third quarter, partly offset of course by lower fiber sales.
Also, the company expects third-quarter cash flows to be higher than the second quarter.
Its business transformation and efficient cost-reduction strategy, along with recovery of the housing market are likely to benefit the to-be-reported quarter’s results.
LouisianaPacific Corporation Price and EPS Surprise
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.
Earnings ESP: Louisiana-Pacific has an Earnings ESP of +0.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks in the construction sector that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the upcoming releases.
TopBuild Corp. (BLD - Free Report) has an Earnings ESP of +1.43% and holds a Zacks Rank #2.
Installed Building Products, Inc. (IBP - Free Report) has an Earnings ESP of +4.24% and carries a Zacks Rank #2.
D.R. Horton, Inc. (DHI - Free Report) has an Earnings ESP of +2.26% and carries a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Housing Recovery to Aid Louisiana-Pacific (LPX) Q3 Earnings?
Louisiana-Pacific Corporation (LPX - Free Report) is slated to report third-quarter 2020 results on Nov 3, before the market opens.
In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 138.9% and 0.9%, respectively. Also, earnings grew 290.9% but revenues dropped 6.8% from the respective year-ago reported figures.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for Louisiana-Pacific’s third-quarter earnings is pegged at $1.49 per share, implying growth from 8 cents a year ago. The consensus estimate for revenues is $773 million, indicating 28.2% year-over-year growth.
Factors at Play
Louisiana-Pacific’s earnings and sales are expected to have increased in the third quarter. As the company’s performance is highly influenced by the housing market, solid rebound of the same is expected to benefit the upcoming results. Solid demand for new housing across the United States is likely to have helped the company support the entire mix of businesses to some extent.
However, it expects manufacturing or customer disruptions caused by the COVID outbreak to still materially impact third-quarter results. As announced during second-quarter earnings call, for for the Oriented Strand Board or OSB business, the company expects to produce and sell roughly 900 million square feet of OSB in the third quarter, factoring in the necessary downtime for preventative maintenance. This will be roughly 8% lower than the year ago, largely due to the idling of Peace Valley midway through the quarter last year.
Meanwhile, the order book for SmartSide strand has been strong and the company expects to post revenue growth in high-single digits for SmartSide in the third quarter, partly offset of course by lower fiber sales.
Also, the company expects third-quarter cash flows to be higher than the second quarter.
Its business transformation and efficient cost-reduction strategy, along with recovery of the housing market are likely to benefit the to-be-reported quarter’s results.
LouisianaPacific Corporation Price and EPS Surprise
LouisianaPacific Corporation price-eps-surprise | LouisianaPacific Corporation Quote
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.
Earnings ESP: Louisiana-Pacific has an Earnings ESP of +0.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With Favorable Combination
Here are some other stocks in the construction sector that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the upcoming releases.
TopBuild Corp. (BLD - Free Report) has an Earnings ESP of +1.43% and holds a Zacks Rank #2.
Installed Building Products, Inc. (IBP - Free Report) has an Earnings ESP of +4.24% and carries a Zacks Rank #2.
D.R. Horton, Inc. (DHI - Free Report) has an Earnings ESP of +2.26% and carries a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>