Earnings Preview: Louisiana-Pacific

Louisiana-Pacific (NYSE:LPX) is expected to report Q4 earnings Monday, March 2 with a conference call scheduled for 11:00 am ET.


Analysts are looking for EPS of (46c) on revenue of $272.79M. The consensus range is (55c)-(31c) for EPS, and $250M-$336M for revenue, according to First Call. Louisiana Pacific announced in January it sees Q408 revenue $250M, consensus for Q4 revenue was $296M at the time the company gave guidance.

Analyst Views

Louisiana-Pacific's shares have fallen -59.36% since it last reported earnings. Share price has dropped to $1.78 from $3.86 in November. As a result of the banking and financial market crisis, the company said on its Q3 earnings conference call that there was lower demand for its products in September and "remains basically paralyzed".

The company also said it is cautiously optimistic that the actions being proposed by Congress and the FDIC around some mortgage relief and the direct actions taken by some institutions to renegotiation mortgage terms will reduce the amount of future and anticipated foreclosures. Louisiana-Pacific anticipated most of its mills would be down more than they would run in Q4. In late January the company reported Q408 was characterized by extremely low demand for all products. The housing market continued to decline, the market channel experienced numerous site closures and location consolidations, the disruption in the credit markets forced inventory liquidations by customers, and the overall economic pessimism lowered the sales of products. In response, the company significant production curtailments across its operations and aggressively implemented its "right-sizing" actions.

Also in January, CIBC downgraded Louisiana Pacific to Sector Performer from Outperformer. The analyst believes the company may have to issue equity at these depressed levels given the tight credit markets and ongoing cash losses. The firm also lowered its target to $11 from $14.