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Louisiana-Pacific (LPX) to Post Q1 Earnings: What to Expect

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Louisiana-Pacific Corporation (LPX - Free Report) is slated to report first-quarter 2021 results on May 4, before the market opens.

In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 9.2% and 8.9%, respectively. Its earnings and revenues rose from the year-ago reported figures.

Notably, its earnings surpassed the consensus mark in each of the trailing three quarters.

Trends in Estimate Revision

The Zacks Consensus Estimate for Louisiana-Pacific’s first-quarter earnings is pegged at $2.67 per share, implying an improvement of 685.3% on a year-over-year basis. The consensus estimate for revenues is $931 million, indicating 59.2% year-over-year growth.

Factors at Play

Louisiana-Pacific’s earnings and sales are expected to have witnessed solid growth in first-quarter 2021. Demand for the company’s products has been resilient backed by solid housing and repair and remodel markets despite COVID-related headwinds.

Also, its business transformation and efficient cost-reduction strategy are likely to benefit the to-be-reported quarter’s results. However, significant fluctuations in the lumber market and coronavirus-induced slowdown are expected to weigh on the same.

During the fourth-quarter 2020 earnings call, the company projected OSB prices for the first quarter to be 15% higher sequentially on similar volume as the last reported quarter. SmartSide revenues have been trending upward sequentially as well as yearly. In fact, it witnessed at least 35% year-over-year growth in SmartSide revenues. Given these positives, it projects EBITDA for the quarter to be reported of $380 million. In first-quarter 2020, adjusted EBITDA was $83 million.

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: Louisiana-Pacific has an Earnings ESP of +11.75%.

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 Worth a Look

Here are some other companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Weyerhaeuser Company (WY - Free Report) has an Earnings ESP of +0.18% and sports a Zacks Rank #1.

Advanced Drainage Systems, Inc. (WMS - Free Report) has an Earnings ESP of +2.63% and carries a Zacks Rank #2.

EMCOR Group, Inc. (EME - Free Report) has an Earnings ESP of +10.26% and a Zacks Rank #2.

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