Louisiana-Pacific (LPX) came out with quarterly earnings of $1.03 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 30.38%. A quarter ago, it was expected that this home construction supplier would post earnings of $0.88 per share when it actually produced earnings of $1.22, delivering a surprise of 38.64%.Over the last four qu ...

LP Building Solutions Reports Fourth Quarter and Full Year 2024 Results, and Provides First Quarter and Full Year Outlook for 2025 NASHVILLE, Tenn. (Feb 19, 2025) - Louisiana-Pacific Corporation (LP) (NYSE: LPX), a leading manufacturer of high-performance building products, today reported its financial results for the fourth quarter and year ended December 31, 2024. Key Highlights for the Fourth Quarter of 2024, Compared to the Fourth Quarter of the Prior Year (2) This is a non-GAAP financial measure. Recon ...

Core Viewpoint - Louisiana-Pacific Corporation (LPX) is expected to report its fourth-quarter 2024 results on February 19, with positive earnings expectations despite some challenges in specific segments [1][12]. Financial Performance - In the last reported quarter, LPX's earnings and net sales exceeded the Zacks Consensus Estimate by 38.6% and 3.2%, respectively, although both metrics declined year-over-year by 20.7% and 0.8% [2]. - The Zacks Consensus Estimate for LPX's fourth-quarter earnings per share (EPS) is 79 cents, reflecting an increase of 11.3% from 71 cents reported a year ago [3]. - The consensus estimate for net sales is $664.4 million, indicating a 1% increase from $658 million in the prior year [3]. Revenue Drivers - The fourth-quarter revenue is anticipated to increase year-over-year, primarily driven by the strength in the Siding business, which accounted for 54.4% of sales in the third quarter [4]. - The Siding segment is expected to see revenue growth of 9-10% year-over-year, reaching approximately $365 million, supported by solid demand and the rollout of SmartSide products [6]. - The consensus estimate for the Siding segment's net sales is pegged at $370 million, up from $332 million in the previous year [6]. Segment Challenges - The Oriented Strand Board (OSB) segment, which accounted for 32.8% of sales, is facing a challenging price environment, with expected net sales of $249 million, down from $272 million in the prior year [7][8]. - Seasonal downtime is expected to impact OSB volumes in the fourth quarter [7]. Margin Expectations - LPX anticipates a consolidated adjusted EBITDA of $85-$105 million, down from $129 million reported a year ago, with Siding contributing $70-$80 million [10]. - The consensus estimate for adjusted EBITDA for the Siding segment is $85 million, an increase from $72 million in the previous year, while OSB's adjusted EBITDA is expected to decline to $41 million from $59 million [11]. Earnings Prediction - The model predicts an earnings beat for LPX, supported by a positive Earnings ESP of +21.14% and a Zacks Rank of 3 (Hold) [12][13].

Core Insights - Louisiana-Pacific (LPX) has consistently surpassed earnings estimates, averaging a 25.50% beat over the last two quarters [1][2] - The company reported earnings of $1.22 per share against a consensus estimate of $0.88, resulting in a surprise of 38.64% for the last quarter [2] - The positive Earnings ESP of +21.14% indicates bullish sentiment among analysts regarding Louisiana-Pacific's near-term earnings potential [6] Earnings Performance - In the previous quarter, Louisiana-Pacific's earnings were $2.09 per share, exceeding the expected $1.86, which resulted in a surprise of 12.37% [2] - The company's strong earnings history has led to upward revisions in estimates, contributing to a positive Earnings ESP [3][6] Earnings ESP and Zacks Rank - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data indicating a nearly 70% success rate for stocks with this profile [4][6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [5] Future Outlook - Louisiana-Pacific's next earnings report is anticipated on February 19, 2025, and the current positive indicators suggest potential for continued strong performance [6]

Louisiana-Pacific (LPX) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 19, 2025, might help the stock move higher if these key numbers are bett ...

Group 1: Zacks Style Scores Overview - Zacks Style Scores is a unique set of guidelines that rates stocks based on value, growth, and momentum characteristics, serving as complementary indicators for the Zacks Rank [2][3] - Each stock is assigned a rating of A, B, C, D, or F, with A being the best score indicating a higher chance of outperforming the market [3] - The Style Scores are categorized into Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three styles [3][4][5][6] Group 2: Value Score - The Value Style Score focuses on identifying stocks that are trading under their true value by analyzing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Group 3: Growth Score - The Growth Style Score emphasizes a company's financial strength and future outlook, taking into account projected and historical earnings, sales, and cash flow [4] Group 4: Momentum Score - The Momentum Style Score helps investors capitalize on upward or downward trends in stock prices or earnings outlook, using factors like one-week price change and monthly percentage change in earnings estimates [5] Group 5: VGM Score - The VGM Score rates stocks based on a combination of value, growth, and momentum, making it a strong indicator to use alongside the Zacks Rank [6] Group 6: Zacks Rank Performance - The Zacks Rank model, which utilizes earnings estimate revisions, has shown that 1 (Strong Buy) stocks have produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, including more than 200 with a Strong Buy rank and 600 with a Buy rank [9] Group 7: Stock Example - Louisiana-Pacific Corporation - Louisiana-Pacific Corporation (LPX) is a leading manufacturer of sustainable engineered wood building materials and has a Zacks Rank of 2 (Buy) with a VGM Score of B [11] - LPX has a Momentum Style Score of B, with shares increasing by 9.4% over the past four weeks, and two analysts have revised their earnings estimates upwards for fiscal 2024 [12] - The Zacks Consensus Estimate for LPX has increased by $0.10 to $5.64 per share, with an average earnings surprise of 30.7% [12]

Core Viewpoint - Louisiana-Pacific (LPX) has shown strong stock performance recently, with a return of +10.9% over the past month, significantly outperforming the S&P 500 composite's +1.2% change [2] Earnings Estimates Revisions - For the current quarter, Louisiana-Pacific is expected to post earnings of $0.79 per share, reflecting an increase of +11.3% year-over-year, with the Zacks Consensus Estimate changing by +2.3% in the last 30 days [5] - The consensus earnings estimate for the current fiscal year is $5.64, indicating a substantial increase of +75.2% from the previous year, with a +4.6% change in the last month [5] - For the next fiscal year, the consensus estimate is $5.37, which represents a decrease of -4.9% from the expected report a year ago, with a +4.7% change recently [6] Revenue Growth Projections - The consensus sales estimate for the current quarter is $664.35 million, showing a year-over-year increase of +1% [9] - For the current fiscal year, the sales estimate is $2.92 billion, indicating a growth of +13.1%, while the next fiscal year's estimate of $3.04 billion reflects a +4% change [9] Recent Performance and Surprises - Louisiana-Pacific reported revenues of $722 million in the last quarter, a slight decline of -0.8% year-over-year, with an EPS of $1.22 compared to $1.62 a year ago [10] - The reported revenues exceeded the Zacks Consensus Estimate of $699.7 million by +3.19%, and the EPS surprise was +38.64% [11] - The company has consistently beaten consensus EPS and revenue estimates over the past four quarters [11] Valuation Metrics - Louisiana-Pacific is graded C on the Zacks Value Style Score, indicating it is trading at par with its peers [15] - The assessment of valuation multiples such as P/E, P/S, and P/CF is essential to determine if the stock is fairly valued compared to its historical values and peers [13][14] Conclusion - The analysis suggests that Louisiana-Pacific may outperform the broader market in the near term, supported by its Zacks Rank 2 [16]

Core Insights - The construction sector is expected to report mixed earnings for Q4 2024, driven by both growth opportunities and challenges [1] - Increased infrastructure spending and strong housing demand are positive factors, while rising labor costs and high interest rates pose risks [1] Earnings Expectations - Construction sector earnings are projected to decline by 5% in Q4 2024, following a 1.8% decline in Q3 2024 [9] - Revenues are expected to increase by 0.4%, a slowdown from the previous quarter's growth of 2.3% [9] Sector Drivers - Federal spending on infrastructure projects, supported by the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA), is a significant growth driver [3] - Reshoring efforts, particularly in semiconductor manufacturing and clean energy projects, are boosting demand for industrial construction [4] Challenges - The construction sector faces challenges from ongoing labor shortages, leading to higher wages and potential project delays [7] - Material costs remain volatile, particularly for cement, steel, and electrical components, impacting profit margins [7] Residential Construction - Despite high mortgage rates, homebuilders are maintaining demand through incentives, but margin compression is a concern due to increased costs [6] - The lack of existing home inventory is supporting new home sales, which benefits residential construction [6] Stock Picks - Five construction stocks identified as likely to beat earnings estimates include Louisiana-Pacific Corporation (LPX), Trex Company, Inc. (TREX), Sterling Infrastructure, Inc. (STRL), PulteGroup, Inc. (PHM), and Weyerhaeuser Company (WY) [2][14] - LPX is expected to report an EPS of 74 cents, reflecting a 4.2% growth year-over-year [15] - TREX's EPS estimate is 5 cents, indicating a 75% decline from the previous year [16] - STRL's EPS is projected at $1.34, showing a 3.1% increase year-over-year [18] - PHM's EPS estimate is $3.21, representing a 2.1% decline from the year-ago figure [19] - WY's EPS is expected to be 7 cents, a 56.3% decrease from the previous year [20]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Company Performance - Louisiana-Pacific (LPX) closed at $114.91, down 0.55% from the previous trading session, underperforming the S&P 500 which gained 1% [1] - Over the past month, LPX shares increased by 12.03%, contrasting with the Construction sector's decline of 3.14% and the S&P 500's drop of 2.14% [1] Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $0.74, reflecting a 4.23% increase from the same quarter last year [2] - Revenue is expected to be $653.85 million, indicating a 0.63% decrease compared to the prior year [2] Analyst Forecasts - Recent revisions to analyst forecasts for Louisiana-Pacific are being monitored, as they often indicate changes in near-term business trends [3] - Upward revisions in estimates suggest analysts' positive outlook on the company's operations and profit generation capabilities [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with 1 rated stocks delivering an average annual return of +25% since 1988 [5] - Louisiana-Pacific currently holds a Zacks Rank of 3 (Hold), with a 4.63% increase in the Zacks Consensus EPS estimate over the past month [5] Valuation Metrics - Louisiana-Pacific has a Forward P/E ratio of 21.53, which is lower than the industry's average Forward P/E of 23.18, indicating a valuation discount [6] - The company has a PEG ratio of 1.4, compared to the Building Products - Wood industry's average PEG ratio of 2.29 [7] Industry Context - The Building Products - Wood industry, part of the Construction sector, has a Zacks Industry Rank of 84, placing it in the top 34% of over 250 industries [8] - Research indicates that industries in the top 50% rated by Zacks outperform those in the bottom half by a factor of 2 to 1 [8]