Published on 10 May 2024 on Zacks via Yahoo Finance

Louisiana-Pacific (LPX) Q1 Earnings & Sales Beat, Guidance Up

Louisiana-Pacific Corporation LPX, or LP, reported impressive first-quarter 2024 results. Earnings and net sales beat their respective Zacks Consensus Estimate and increased on a year-over-year basis.LPX’s shares soared 20.8% during the trading session on May 8, 2024.The impressive first-quarter 2024 performance was primarily propelled by several key factors. Notably, there was a notable surge in demand for Siding and OSB, highlighted by a significant increase in volume. Record-breaking volumes for ExpertFinish and BuilderSeries were achieved, underscoring the robust market appetite. Moreover, higher commodity prices and enhanced operational efficiency played pivotal roles in driving margin expansion during this period. Despite lingering macroeconomic uncertainties, the steadfast demand for SmartSide and Structural Solutions has persisted into the second quarter, further bolstering the positive outlook. Consequently, LPX is confidently revising its projections upward for both the second quarter and the entire fiscal year, reflecting the substantial momentum derived from these driving forces.

Detailed Discussion

Louisiana-Pacific reported adjusted earnings per share (EPS) of $1.53, beating the Zacks Consensus Estimate of $1.13 by 35.4%. The bottom line increased 350% from the year-ago quarter’s reported figure of 34 cents on the back of strong adjusted EBITDA.Net sales of $724 beat the consensus estimate of $677 million by 7% and grew 24% from the prior-year figure, owing to solid Siding and OSB sales.Adjusted EBITDA of $182 million was up 175.8% from the prior-year quarter’s level, backed by higher OSB selling prices and a decrease in inflationary costs (including freight, raw materials, and labor).