Louisiana-Pacific Corp Third Quarter Earnings Sneak Peek

Louisiana-Pacific Corporation (NYSE:LPX) will unveil its latest earnings on Tuesday, November 6, 2012. Louisiana-Pacific is engaged in the manufacture of building products. It operates in three segments: Oriented Strand Board, Siding, and Engineered Wood Products.

Louisiana-Pacific Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 23 cents per share, a spike from a loss of 19 cents in the year-ago quarter. During the past three months, the average estimate has moved up from 6 cents. Between one and three months ago, the average estimate moved up. It has risen from 18 cents during the last month. Analysts are projecting profit of 27 cents per share versus net loss of 99 cents last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported net income of 2 cents per share against a mean estimate of 4 cents. Two quarters ago, it beat expectations by 9 cents with a loss of 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $479.3 million in revenue this quarter, a rise of 36.7% from the year-ago quarter. Analysts are forecasting total revenue of $1.67 billion for the year, a rise of 22.8% from last year’s revenue of $1.36 billion.

Stock Price Performance: Between August 7, 2012 and October 31, 2012, the stock price rose $3.98 (33.7%), from $11.81 to $15.79. The stock price saw one of its best stretches over the last year between October 9, 2012 and October 18, 2012, when shares rose for eight straight days, increasing 18.7% (+$2.47) over that span. It saw one of its worst periods between March 27, 2012 and April 10, 2012 when shares fell for 10 straight days, dropping 18.5% (-$1.84) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.49 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 4.2 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 60.5% to $259 million while assets rose 33.3% to $903.8 million.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 9% in the first quarter before climbing again in the second quarter.

The company upped its gross margin by 8.7 percentage points in the in the second quarter. Revenue rose 18% while cost of sales rose 7% to $359.9 million from a year earlier.

A Look Back: In the second quarter, the company’s loss widened to a loss of a $37.3 million (27 cents a share) from a loss of $35.5 million (27 cents) a year earlier, missing analyst expectations.

Analyst Ratings: With five analysts rating the stock a sell, two rating it as a buy and five rating it as a hold, there are indications of a bearish outlook.

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

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