Louisiana-Pacific Q1; EPS Beat, 50% Revenue Slump, Lower Volume & More

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• Louisiana-Pacific Corp (NYSE: LPX) reported a first-quarter FY23 sales decline of 50% year-on-year to $584 million, missing the consensus of $621.34 million.
• The home construction, repair, and remodeling firm registered an adjusted EPS of $0.34, down 92.8% Y/Y, beating the analyst consensus of $0.05.
• Sales in Q1 fell as single-family housing starts were down nearly 30%. Further, lower volume, freight and labor inflation, and decreased revenues across all segments dragged quarterly performance.
• On May 2, Louisiana-Pacific closed on the $80 million acquisition of the assets owned by Wawa OSB, Inc. 
• Segment Revenues: Siding down 0.3% Y/Y to $331 million, Oriented Strand Board (OSB) fell 75% to $189 million, and South America sales decreased 17% to $55 million.
• The gross profit plunged 83.7% to $101 million, while the margin decreased by 3,583 bps to 17.3%.
• The company held $126 million in cash and equivalents. 
• On April 28, the company declared a quarterly cash dividend of $0.24 per share. The dividend will be payable on May 26, 2023, to stockholders of record as of May 12, 2023.
• Q2 Outlook: Louisiana-Pacific sees Q2 Siding Solutions revenue to decrease Y/Y by up to 5% and OSB revenue jump of 20% Q/Q.
• Adjusted EBITDA is expected to be greater than $80 million.
• The company expects FY23 capital expenditures of $330 million to $370 million. This excludes the cost on Wawa acquisition.
• Price Action: LPX shares are trading higher by 6% at $63.28 on the last check Wednesday.