Louisiana-Pacific Corp Earnings: Loss Made Worse, Misses Wall Street Estimates

Louisiana-Pacific Corporation (NYSE:LPX) reported its results for the fourth quarter. Louisiana-Pacific is engaged in the manufacture of building products. It operates in three segments: Oriented Strand Board, Siding, and Engineered Wood Products.

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Louisiana-Pacific Earnings Cheat Sheet for the Fourth Quarter

Results: Loss widened to $46.6 million (34 cents per diluted share) from $6.8 million (loss of 5 cents per share) in the same quarter a year earlier.

Revenue: Fell 1.3% to $312.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Louisiana-Pacific Corporation fell short of the mean analyst estimate of a loss of 21 cents per share. It fell short of the average revenue estimate of $319.6 million.

Quoting Management: “Demand for building products slowed in the fourth quarter due to seasonality and inventory reduction actions taken by our customers at year end,” said LP’s CEO, Rick Frost. “For the full year, U.S. single family housing starts were down nine percent to a 50-year low, which made 2011 another tough year for LP. On the bright side, our South American operations had a record year of profitability, and LP ended 2012 with a strong balance sheet that included $340 million in cash.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 2 cents in the third quarter, by 8 cents in the second quarter, and by 4 cents in the first quarter.

Looking Forward: Analysts seem more negative about the company’s results for the next quarter than ninety days ago. The average estimate for the first quarter of the next fiscal year has moved from a loss of 14 cents a share to a loss of 16 cents over the last ninety days. For the fiscal year, the average estimate has moved from a loss of 74 cents a share to a loss of 79 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com