Engineered wood products maker Louisiana-Pacific Q3 adjusted EPS beats expectations

Overview

• Louisiana-Pacific Q3 consolidated net sales decreased by $59 mln to $663 mln

• Adjusted EBITDA for Q3 beats analyst expectations

• Adjusted EPS for Q3 missed analyst expectations

Outlook

• Company expects Q4 siding net sales to grow by ~3% to $370 mln

• Louisiana-Pacific projects full-year siding net sales growth of ~8% to $1.68 bln

• Company estimates full-year capital expenditures at ~$315 mln

Result Drivers

• SIDING SALES - Siding net sales increased by $22 mln, driven by 5% higher selling prices

• OSB DECLINE - OSB net sales decreased by $74 mln due to lower prices and volumes

• ADJUSTED EBITDA IMPACT - Decrease in Adjusted EBITDA primarily due to $55 mln impact from lower OSB prices and $5 mln from lower volumes

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

• Wall Street's median 12-month price target for Louisiana-Pacific Corp is $111.00, about 23.1% above its November 4 closing price of $85.33

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw53FvYZa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)