Louisiana-Pacific Shares Surge 14% on Massive Q1 Earnings Beat

NEW YORK – Louisiana-Pacific Corporation (NYSE: NYSE:), a prominent manufacturer of high-performance building materials, announced a significant earnings beat for the first quarter of 2024, sending its shares soaring by 14%. The company reported a robust increase in demand for its Siding and Oriented Strand Board (OSB) products, which propelled its financial performance beyond analyst expectations.

For the first quarter, Louisiana-Pacific posted adjusted earnings per share (EPS) of $1.53, eclipsing the analyst consensus of $1.12 by $0.41. Revenue climbed to $724 million, exceeding the consensus estimate of $688.85 million and marking a 24% increase from the same period last year.

The impressive results were driven by a 9% rise in Siding net sales to $361 million and a remarkable 65% surge in OSB net sales to $313 million.

The company’s net income for the quarter reached $108 million, a substantial $85 million improvement from the previous year, while adjusted EBITDA soared to $182 million, up $116 million YoY. The strong financial performance was attributed to increased volume, higher commodity prices, and improved operating efficiency, which led to expanded margins.

CEO Brad Southern highlighted the strong demand for the company’s Siding and Structural Solutions, contributing to the optimistic outlook for the second quarter and the full year. Southern stated, “While macro uncertainties remain, strong demand for SmartSide and Structural Solutions has continued in the second quarter. As such, we are increasing our second quarter and full-year outlook.”

Looking ahead, Louisiana-Pacific anticipates Siding net sales growth between 20% to 25% for the second quarter and 11% to 13% for the full year. The company’s second-quarter adjusted EBITDA is projected to be between $95 million and $105 million, with full-year figures estimated between $340 million and $360 million.

For OSB, the adjusted EBITDA guidance is set at $125 million to $135 million for the second quarter and $315 million to $325 million for the full year.

The midpoint of the second-quarter adjusted EBITDA guidance for both Siding and OSB suggests an optimistic outlook, surpassing the current analyst consensus. This positive guidance, coupled with the first-quarter earnings beat, has been a key driver behind the stock’s double-digit percentage increase.

Investors have responded favorably to the company’s financial achievements and forward-looking statements, as evidenced by the significant uptick in the company’s share price following the earnings release. Louisiana-Pacific’s commitment to capital allocation was also evident, with $41 million invested in capital expenditures and $19 million paid in cash dividends during the first quarter.

Additionally, the company has authorized an additional $250 million for stock repurchases, reflecting confidence in its financial position and future prospects.

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