Louisiana-Pacific Earnings: Here’s Why Investors are Selling Shares Now

Louisiana-Pacific Corp. (NYSE:LPX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.78%.

Louisiana-Pacific Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1950% to $0.41 in the quarter versus EPS of $0.02 in the year-earlier quarter.

Revenue: Rose 33.85% to $572.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Louisiana-Pacific Corp. reported adjusted EPS income of $0.41 per share. By that measure, the company beat the mean analyst estimate of $0.33. It beat the average revenue estimate of $560.65 million.

Quoting Management: “This was another good quarter for LP as the U.S. housing market continues to recover,” said Curt Stevens, CEO. “While OSB prices moderated during the second quarter, this segment showed good earnings. Strong demand in Siding and South America also added to our results.”

Key Stats (on next page)…

Revenue increased 6.53% from $537.5 million in the previous quarter. EPS were the same at $0.41 as the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.42 to a profit $0.20. For the current year, the average estimate has moved down from a profit of $1.53 to a profit of $1.13 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)