Louisiana-Pacific Shares Gain As Q2 Results Tops Estimates

  • Louisiana-Pacific Corp LPX reported second-quarter sales growth of 142% year-over-year to $1.33 billion, beating the consensus of $1.17 billion.
  • Sales by segments: Siding $291 million (+32% Y/Y), Oriented Strand Board $778 million (+281% Y/Y), Engineered Wood Products $158 million (+99% Y/Y), and South America $74 million (+94% Y/Y).
  • Oriented Strand Board sales volume increased by 8% in the quarter, primarily due to the nonoccurrence of last year's COVID-related downtime.
  • The gross margin expanded by 3,200 bps to 53.4%.
  • The operating income increased by $653 million from $53 million a year ago, and the margin expanded by 3,960 bps to 49.3%.
  • Adjusted EPS improved to $4.74 from $0.43 in 2Q20, beating the consensus of $4.18.
  • Louisiana-Pacific generated cash from operating activities year-to-date of $772 million, compared to $120 million a year ago.
  • Adjusted EBITDA increased to $684 million from $97 million a year ago, and margin expanded by 3,390 bps to 51.6%.
  • Louisiana-Pacific had cash and cash equivalents of $603 million as of June 30, 2021.
  • The company's quarterly cash dividend of $0.18 per share represented a mid-year increase of $0.02 per share or 13%.
  • Q3 Outlook: Louisiana-Pacific expects Siding Solutions revenue to be about 10% higher year-over-year, OSB revenue to be sequentially lower sequentially by about 10%. Adjusted EBITDA to be greater than $530 million.
  • It expects capital expenditures for FY21 to be approximately $270 million.
  • Price action: LPX shares traded higher by 3.18% at $55.69 on the last check Tuesday.

Posted In: BriefsForest ProductsMaterialsEarningsNewsGuidance

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