Louisiana-Pacific Earnings: Here’s Why Investors are Selling Shares Now
Louisiana-Pacific Corp. (NYSE:LPX) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.95%.
Louisiana-Pacific Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.41 in the quarter versus EPS of $-0.06 in the year-earlier quarter.
Revenue: Rose 48.69% to $537.5 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 missed the mean analyst estimate of $0.45. It missed the average revenue estimate of $558.3 million.
Quoting Management: “LP’s strong financial results were driven by a broad recovery of building activity across all regions of the U.S., which led to improved demand for our products and increased OSB pricing,” CEO Curt Stevens said. “In addition, our South America segment continued to perform well.”
Key Stats (on next page)…
Revenue increased 17.18% from $458.7 million in the previous quarter. EPS increased 127.78% from $0.18 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.46 to a profit $0.50. For the current year, the average estimate has moved up from a profit of $1.23 to a profit of $1.61 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)