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Louisiana-Pacific (LPX) Q2 Earnings to Rise: Here's Why

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Louisiana-Pacific Corporation (LPX - Free Report) is slated to report second-quarter 2021 results on Aug 3, before the market opens.

In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 9.1% and 9.2%, respectively. Earnings and revenues also rose significantly from the year-ago reported figures.

It is to be noted that its earnings surpassed the consensus mark in each of the trailing four quarters.

Trends in Estimate Revision

The Zacks Consensus Estimate for Louisiana-Pacific’s second-quarter earnings is pegged at $4.25 per share, implying an improvement of 888.4% on a year-over-year basis. The consensus estimate for revenues is $1.21 billion, indicating 120.3% year-over-year growth.

Factors at Play

Louisiana-Pacific’s earnings and sales are expected to have witnessed solid growth in second-quarter 2021 on the back of robust housing, and repair and remodel markets. The company has been witnessing intense demand for SmartSide and OSB.

Also, its business transformation and efficient cost-reduction strategy are likely to benefit the to-be-reported quarter’s results. Yet, supply chain disruptions and tight logistics availability are expected to weigh on the same.

For the second quarter, the company expects SmartSide sales to be more than 30% from the year-ago figure. OSB sales are expected to sequentially rise more than 30%. The company anticipates adjusted EDITDA of more than $580 million.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Louisiana-Pacific — which shares space with Boise Cascade Company (BCC - Free Report) in the Zacks Building Products - Wood industry — 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. That’s not the case here. 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 -3.84%.

Zacks Rank: It currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Worth a Look

Here are some 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.

Primoris Services Corporation (PRIM - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #3.

Quanta Services, Inc. (PWR - Free Report) has an Earnings ESP of +10.32% and carries a Zacks Rank #2.