We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 6.2% and 0.5%, respectively. Its earnings and revenues fell 51.1% and 16% from the year-ago quarter’s reported figures, respectively.
Its earnings surpassed the consensus mark in 10 of the trailing 11 quarters.
Trend in Estimates
The Zacks Consensus Estimate for Louisiana-Pacific’s fourth-quarter earnings is pegged at 58 cents per share, suggesting a significant fall from $2.24 reported a year ago. The consensus estimate for revenues is pegged at $707 million, suggesting a fall from $992 million year-over-year.
Factors to Note
Louisiana-Pacific’s fourth-quarter earnings and sales are likely to have witnessed a year-over-year decline, thanks to supply chain woes and inflationary pressure. The OSB segment has been witnessing lower prices, increased raw material and wage inflation, and higher facility maintenance costs. Also, transporting costs and marketing spending are likely to have put pressure on margins in the to-be-reported quarter.
LPX projected consolidated adjusted EBITDA for the to-be-reported quarter to be nearly $100 million, significantly down from $636 million reported a year ago.
The company assumes OSB to reflect a year-over-year decline in the to-be-reported quarter. It expected OSB revenues to be sequentially low by 30% (based on Random Lengths’ report published on Oct 28, 2022). The consensus estimate for OSB units is pegged at $269 million, suggesting a decline from $470 million in the prior year.
Offsetting these negatives to some extent, strength in the Siding business and higher demand for specialty products are likely to have aided the to-be-reported quarter. Also, strategic business transformation, effective cash management and inorganic moves are added positives for LPX.
Louisiana-Pacific projected Siding Solutions’ revenue growth to be more than 30% from the year-ago quarter’s levels. The consensus estimate for the Siding segment’s net sales is pegged at $369 million, indicating an improvement from the year-ago reported figure of $281 million.
The consensus estimate for the South America segment’s net sales is pegged at $70 million, suggesting a rise from $63 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 0.00%.
Here is a company 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.
Fluor Corporation (FLR - Free Report) has an Earnings ESP of +2.48% and a Zacks Rank #2.
FLR’s earnings topped the consensus mark in one of the last four quarters but missed on three occasions, the average negative surprise being 38.2%. For the to-be-reported quarter, the Zacks Consensus Estimate is pegged at 54 cents, which indicates 74.2% year-over-year growth.
Recent Peer Releases
Jacobs Engineering Group Inc. (J - Free Report) reported first-quarter fiscal 2023 (ended Dec 30, 2022) results, with earnings and revenues surpassing the Zacks Consensus Estimate and rising year over year.
The results reflect Jacobs’ ability to capture high growth opportunities emerging across Climate Response, Data Solutions, and Consulting & Advisory.
AECOM (ACM - Free Report) reported better-than-expected results for first-quarter fiscal 2023, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
On a year-over-year basis, the bottom line declined despite top-line growth. AECOM’s strong top-line performance was backed by strong organic NSR growth.
Image: Bigstock
Louisiana-Pacific (LPX) to Post Q4 Earnings: What to Expect
Louisiana-Pacific Corporation (LPX - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 21, before market open.
In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 6.2% and 0.5%, respectively. Its earnings and revenues fell 51.1% and 16% from the year-ago quarter’s reported figures, respectively.
Its earnings surpassed the consensus mark in 10 of the trailing 11 quarters.
Trend in Estimates
The Zacks Consensus Estimate for Louisiana-Pacific’s fourth-quarter earnings is pegged at 58 cents per share, suggesting a significant fall from $2.24 reported a year ago. The consensus estimate for revenues is pegged at $707 million, suggesting a fall from $992 million year-over-year.
Factors to Note
Louisiana-Pacific’s fourth-quarter earnings and sales are likely to have witnessed a year-over-year decline, thanks to supply chain woes and inflationary pressure. The OSB segment has been witnessing lower prices, increased raw material and wage inflation, and higher facility maintenance costs. Also, transporting costs and marketing spending are likely to have put pressure on margins in the to-be-reported quarter.
LPX projected consolidated adjusted EBITDA for the to-be-reported quarter to be nearly $100 million, significantly down from $636 million reported a year ago.
The company assumes OSB to reflect a year-over-year decline in the to-be-reported quarter. It expected OSB revenues to be sequentially low by 30% (based on Random Lengths’ report published on Oct 28, 2022). The consensus estimate for OSB units is pegged at $269 million, suggesting a decline from $470 million in the prior year.
Offsetting these negatives to some extent, strength in the Siding business and higher demand for specialty products are likely to have aided the to-be-reported quarter. Also, strategic business transformation, effective cash management and inorganic moves are added positives for LPX.
Louisiana-Pacific projected Siding Solutions’ revenue growth to be more than 30% from the year-ago quarter’s levels. The consensus estimate for the Siding segment’s net sales is pegged at $369 million, indicating an improvement from the year-ago reported figure of $281 million.
The consensus estimate for the South America segment’s net sales is pegged at $70 million, suggesting a rise from $63 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 0.00%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stock With Favorable Combination
Here is a company 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.
Fluor Corporation (FLR - Free Report) has an Earnings ESP of +2.48% and a Zacks Rank #2.
FLR’s earnings topped the consensus mark in one of the last four quarters but missed on three occasions, the average negative surprise being 38.2%. For the to-be-reported quarter, the Zacks Consensus Estimate is pegged at 54 cents, which indicates 74.2% year-over-year growth.
Recent Peer Releases
Jacobs Engineering Group Inc. (J - Free Report) reported first-quarter fiscal 2023 (ended Dec 30, 2022) results, with earnings and revenues surpassing the Zacks Consensus Estimate and rising year over year.
The results reflect Jacobs’ ability to capture high growth opportunities emerging across Climate Response, Data Solutions, and Consulting & Advisory.
AECOM (ACM - Free Report) reported better-than-expected results for first-quarter fiscal 2023, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
On a year-over-year basis, the bottom line declined despite top-line growth. AECOM’s strong top-line performance was backed by strong organic NSR growth.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.