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In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 4.3% and 10.5%, respectively. Its earnings and revenues fell 9.5% and 3% from the year-ago quarter’s reported figures, respectively.
It is to be noted that earnings surpassed the consensus mark in nine of the trailing 10 quarters.
Trend in Estimates
The Zacks Consensus Estimate for Louisiana-Pacific’s third-quarter earnings is pegged at $1.62 per share, suggesting a fall of 58.1% on a year-over-year basis. The consensus estimate for revenues is pegged at $847.81 million, suggesting a 30.5% year-over-year decline.
LouisianaPacific Corporation Price and EPS Surprise
Louisiana-Pacific’s earnings and sales are expected to have witnessed a year-over-year decline in the third quarter due to supply chain woes and inflationary pressure, primarily for material and labor. Also, the increasing cost of transporting logs to the mills and higher marketing spending are likely to have put pressure on margins in the third quarter.
LPX projected consolidated adjusted EBITDA for the to-be-reported quarter to be nearly $200 million, significantly down from $522 million reported a year ago.
Yet, solid Siding business, higher demand for specialty products and its focus on accelerating strategic transformation are likely to have driven growth in the to-be-reported quarter. Also, strategic business transformation, effective cash management and inorganic moves are added positives for LPX and its peer company, Floor & Decor Holdings, Inc. (FND - Free Report) .
Louisiana-Pacific projected Siding Solutions’ revenue growth to be more than 20% from the year-ago quarter’s levels. The consensus estimate for the Siding segment’s net sales is pegged at $374 million, indicating an improvement of 19.9% from the year-ago reported figure.
Meanwhile, LPX assumes OSB to reflect lower prices and intense inflation in the to-be-reported quarter. The company expected OSB revenues to be sequentially low by 40% (based on Random Lengths’ report published on Aug 5, 2022).
The consensus estimate for OSB units is pegged at $373 million, suggesting a decline of 37.8% from $600 million in the prior year. The same for the South America segment’s net sales is pegged at $72 million, suggesting a fall of 5.3% from $76 million in the prior year.
What the Zacks Model Says
Our proven model doesn’t conclusively predict 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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LPX currently carries a Zacks Rank #5 (Strong Sell) and has an Earnings ESP of -3.29%.
Based in Atlanta, GA, Floor & Decor operates as a multi-channel specialty retailer and commercial flooring distributor of hard surface flooring and related accessories. The company has been benefiting from its growth strategies, successfully generating profits despite near-term macroeconomic challenges like inflationary costs, rising mortgage rates, and declining existing home sales.
FND currently holds a Zacks Rank #3. That said, FND has an expected earnings growth rate of 11.1% for 2022 and 28.4% for 2023.
Stocks With Favorable Combination
Here are two companies in the Zacks Construction sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.
Based in Winchester, VA, Trex Company, Inc. (TREX - Free Report) — which manufactures and distributes decking, railing, and outdoor living products and accessories — topped earnings estimates in all the trailing four quarters, with the average surprise being 10.8%.
TREX is poised to beat expectations when it reports third-quarter 2022 results on Oct 31, after market close. It carries a Zacks Rank #3 and has an Earnings ESP of +25.62%, at present.
Continued investments by customers in enhancing their outdoor living experience are likely to have aided the company’s quarterly performance. Favorable pricing/mix and focus on cost reduction efforts and production efficiencies are added positives.
Headquartered in Dothan, AL, Construction Partners, Inc. (ROAD - Free Report) is a civil infrastructure company. Organic and inorganic growth opportunities in the attractive southeastern U.S. road construction/repair market are expected to drive the company’s growth. It missed earnings estimates in three the trailing four quarters and met once, with the average negative surprise being 75.6%.
ROAD is poised to beat expectations when it reports its fourth-quarter fiscal 2022 results. It carries a Zacks Rank #3 and has an Earnings ESP of +8.00%, at present.
Strong demand for infrastructure services throughout end markets in both the private and public sectors, consistent execution of its business model, and a growth strategy that focuses on operational performance and effective project execution are likely to have aided the company’s quarterly performance.
Image: Bigstock
Louisiana-Pacific (LPX) to Post Lower Q3 Earnings: Here's Why
Louisiana-Pacific Corporation (LPX - Free Report) is slated to report third-quarter 2022 results on Nov 1, before market open.
In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 4.3% and 10.5%, respectively. Its earnings and revenues fell 9.5% and 3% from the year-ago quarter’s reported figures, respectively.
It is to be noted that earnings surpassed the consensus mark in nine of the trailing 10 quarters.
Trend in Estimates
The Zacks Consensus Estimate for Louisiana-Pacific’s third-quarter earnings is pegged at $1.62 per share, suggesting a fall of 58.1% on a year-over-year basis. The consensus estimate for revenues is pegged at $847.81 million, suggesting a 30.5% year-over-year decline.
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 a year-over-year decline in the third quarter due to supply chain woes and inflationary pressure, primarily for material and labor. Also, the increasing cost of transporting logs to the mills and higher marketing spending are likely to have put pressure on margins in the third quarter.
LPX projected consolidated adjusted EBITDA for the to-be-reported quarter to be nearly $200 million, significantly down from $522 million reported a year ago.
Yet, solid Siding business, higher demand for specialty products and its focus on accelerating strategic transformation are likely to have driven growth in the to-be-reported quarter. Also, strategic business transformation, effective cash management and inorganic moves are added positives for LPX and its peer company, Floor & Decor Holdings, Inc. (FND - Free Report) .
Louisiana-Pacific projected Siding Solutions’ revenue growth to be more than 20% from the year-ago quarter’s levels. The consensus estimate for the Siding segment’s net sales is pegged at $374 million, indicating an improvement of 19.9% from the year-ago reported figure.
Meanwhile, LPX assumes OSB to reflect lower prices and intense inflation in the to-be-reported quarter. The company expected OSB revenues to be sequentially low by 40% (based on Random Lengths’ report published on Aug 5, 2022).
The consensus estimate for OSB units is pegged at $373 million, suggesting a decline of 37.8% from $600 million in the prior year. The same for the South America segment’s net sales is pegged at $72 million, suggesting a fall of 5.3% from $76 million in the prior year.
What the Zacks Model Says
Our proven model doesn’t conclusively predict 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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LPX currently carries a Zacks Rank #5 (Strong Sell) and has an Earnings ESP of -3.29%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
About FND
Based in Atlanta, GA, Floor & Decor operates as a multi-channel specialty retailer and commercial flooring distributor of hard surface flooring and related accessories. The company has been benefiting from its growth strategies, successfully generating profits despite near-term macroeconomic challenges like inflationary costs, rising mortgage rates, and declining existing home sales.
FND currently holds a Zacks Rank #3. That said, FND has an expected earnings growth rate of 11.1% for 2022 and 28.4% for 2023.
Stocks With Favorable Combination
Here are two companies in the Zacks Construction sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.
Based in Winchester, VA, Trex Company, Inc. (TREX - Free Report) — which manufactures and distributes decking, railing, and outdoor living products and accessories — topped earnings estimates in all the trailing four quarters, with the average surprise being 10.8%.
TREX is poised to beat expectations when it reports third-quarter 2022 results on Oct 31, after market close. It carries a Zacks Rank #3 and has an Earnings ESP of +25.62%, at present.
Continued investments by customers in enhancing their outdoor living experience are likely to have aided the company’s quarterly performance. Favorable pricing/mix and focus on cost reduction efforts and production efficiencies are added positives.
Headquartered in Dothan, AL, Construction Partners, Inc. (ROAD - Free Report) is a civil infrastructure company. Organic and inorganic growth opportunities in the attractive southeastern U.S. road construction/repair market are expected to drive the company’s growth. It missed earnings estimates in three the trailing four quarters and met once, with the average negative surprise being 75.6%.
ROAD is poised to beat expectations when it reports its fourth-quarter fiscal 2022 results. It carries a Zacks Rank #3 and has an Earnings ESP of +8.00%, at present.
Strong demand for infrastructure services throughout end markets in both the private and public sectors, consistent execution of its business model, and a growth strategy that focuses on operational performance and effective project execution are likely to have aided the company’s quarterly performance.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.