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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 2022 results on May 3, before market open.

In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 20.4% and 17.3%, respectively. Its earnings and revenues rose 11.4% and 15% from the year-ago quarter’s reported figures.

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

Trend in Estimates

The Zacks Consensus Estimate for Louisiana-Pacific’s second-quarter earnings is pegged at $4.54 per share, suggesting a rise of 50.8% on a year-over-year basis. The consensus estimate for revenues is $1.21 billion, suggesting an 18.5% year-over-year growth.

LouisianaPacific Corporation Price and EPS Surprise

 

LouisianaPacific Corporation Price and EPS Surprise

LouisianaPacific Corporation price-eps-surprise | LouisianaPacific Corporation Quote

 

Factors to Note

Louisiana-Pacific’s earnings and sales are expected to have witnessed year-over-year growth in the first quarter due to solid Siding pricing and positives from the Houlton conversion despite OSB price fluctuations.

The company’s gradual transformation from a commodity producer to a more stable cash-generative business, increased focus on the Siding business and rigorous cost-control efforts bode well. Also, robust housing demand and a rebound in repair and remodel activities are likely to have benefited LPX.

Its strategic business transformation, effective cash management and inorganic moves are likely to benefit the to-be-reported quarter’s results.

During fourth-quarter 2021 earnings call, Louisiana-Pacific projected Siding Solutions revenue growth to be 10% from the year-ago quarter’s levels. Also, the company expects OSB revenues for the first quarter to rise 40% sequentially. LPX projects consolidated adjusted EBITDA for the to-be-reported quarter to be more than $500 million, up from $461 million reported in first-quarter 2021.

The consensus estimate for the Siding segment’s net sales is pegged at $312 million, indicating an improvement of 7.2% from the year-ago reported figure of $291 million. The same for OSB units is pegged at $703 million, suggesting a decline of 9.6% from $778 million in the prior year. The consensus estimate for the EWP business’ net sales is $127 million, which suggests a rise of 19.6% from $158 million a year ago. The same for the South America segment’s net sales is pegged at $54 million, suggesting a fall of 27% from $74 million in the prior year.

Increased prices for resins and other raw materials as well as freight costs are likety to have put pressure on first-quarter results.

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: The company has an Earnings ESP of +1.87%.

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

Recent Construction Releases

UFP Industries, Inc. (UFPI - Free Report) reported stellar results for first-quarter 2022. Both earnings and net sales beat the Zacks Consensus Estimate as well as improved impressively on a year-over-year basis.

With this, the company’s earnings and sales surpassed the consensus mark in all the trailing five quarters. The uptrend was mainly driven by the diversity of markets and an improved pricing model.

Weyerhaeuser Company (WY - Free Report) reported first-quarter 2022 results, wherein earnings and revenues handily beat the respective Zacks Consensus Estimate despite persistent supply-chain challenges.

Weyerhaeuser earnings have surpassed analysts’ expectations in three of the last four quarters and missed the same on one occasion.

PulteGroup Inc. (PHM - Free Report) reported solid results for first-quarter 2022. Both earnings and revenues topped the Zacks Consensus Estimate and improved year over year.

PHM benefited from gains in revenues, improved gross margin and overhead leverage.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.