Louisiana-Pacific shares jump 6% on earnings beat, strong siding sales

NEW YORK - Louisiana-Pacific Corporation (NYSE:LPX ) reported third-quarter earnings that topped analyst expectations, driven by record sales in its siding segment. The company's shares jumped 6.9% following the release.

The building products manufacturer posted adjusted earnings per share of $1.22, beating the consensus estimate of $0.89. Revenue came in at $722 million, surpassing analysts' projections of $681.57 million.

Louisiana-Pacific's siding segment was a standout performer, with net sales increasing 22% YoY to $420 million. The segment set new records for both net sales and adjusted EBITDA in the quarter.

"LP's teams executed our strategy to drive growth, margin, specialization, and efficiency in the third quarter," said LP Chairperson and CEO Brad Southern. "As a result, the Siding segment set new records for net sales and Adjusted EBITDA."

While siding sales surged, the company's oriented strand board (OSB) segment saw net sales decrease 24% YoY to $253 million, reflecting lower OSB prices.

Overall consolidated net sales dipped 1% to $722 million compared to the same period last year. Net income was $90 million, down from $118 million in Q3 2023.

For the fourth quarter, Louisiana-Pacific expects siding net sales growth of 9% to 10% YoY. The company forecasts full-year 2024 consolidated adjusted EBITDA between $655 million and $675 million.

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Source: Investing.com