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Preview: Louisiana-Pacific's Earnings

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Louisiana-Pacific (NYSE:LPX) announces its next round of earnings this Tuesday, February 16. Here is Benzinga's look at Louisiana-Pacific's Q4 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Louisiana-Pacific EPS will likely be near $1.74 while revenue will be around $784.92 million, according to analysts. Louisiana-Pacific reported a per-share profit of $0.05 when it published results during the same quarter last year. Sales in that period totaled $537.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 3380.0%. Sales would be up 46.17% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 1.45 0.16 0.31 0.11
EPS Actual 1.56 0.43 0.34 0.05
Revenue Estimate 753.09 M 530.64 M 577.54 M 559.39 M
Revenue Actual 795.00 M 548.00 M 585.00 M 537.00 M

Stock Performance

Over the last 52-week period, shares are up 30.61%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Louisiana-Pacific is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings