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

  • 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.
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceMarketsGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!