We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Louisiana-Pacific (LPX) Q1 Earnings & Revenues Lag, Down Y/Y
Read MoreHide Full Article
Louisiana-Pacific Corporation (LPX - Free Report) reported first-quarter 2019 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Also, both the top and bottom lines deceased on a year-over-year basis due to increased macro environment headwinds.
The company reported adjusted earnings of 13 cents per share, missing the consensus mark of 16 cents by 18.8%. The reported earnings declined 79.4% from the year-ago figure of 63 cents. The downside can be attributed to macro environment headwinds, and higher cost and expenses.
Louisiana-Pacific’s net sales came in at $582 million, which lagged analysts’ expectation of $593.6 million by 2%. The said figure decreased 15.8% from $691.3 million on a year-over-year basis. Lower OSB prices and softness in EWP sales negatively impacted the company’s top-line performance.
Louisiana-Pacific Corporation Price, Consensus and EPS Surprise
Gross profit during the quarter was $81 million, declining 54.2% year over year. Selling, general and administrative expenses, as a percentage of revenues, increased 241 basis points (bps) to 9.79% from a year ago.
Adjusted EBITDA from continuing operations totaled $58 million in the quarter, down 63.5% from $159 million recorded in the prior-year period. Adjusted EBITDA margin also contracted 1300 bps to 10% from 23% in the year-ago quarter.
Segmental Analysis
Siding: The segment’s sales came in at $236 million, 4% higher than the prior-year figure of $227 million. However, adjusted EBITDA of $42 million decreased 6.7% from the year-ago period. Particularly in the LP SmartSide Trim & Siding business, revenues improved 13% from the prior-year level during the quarter.
Oriented Strand Board or OSB: Sales at the OSB segment deteriorated 33.5% year over year to $208 million. Moreover, adjusted EBITDA during the reported quarter fell significantly to $8 million from $105 million in the year-ago period due to reduced selling prices. Notably, volume of Structural Solutions (value-added OSB) increased to 40% of total OSB sold. However, overall OSB price realization dropped 29% year over year.
Engineered Wood Products (EWP): EWP sales declined 14.2% year over year to $90 million in the quarter. However, adjusted EBITDA improved 40% from the prior-year quarter to $7 million.
South America: The segment’s sales grew 7.1% year over year to $45 million. However, adjusted EBITDA of $10 million fell 9.1% from the year-ago quarter.
Financials
As of Mar 31, 2019, Louisiana-Pacific had cash and cash equivalents of $361 million compared with $878 million at the end of 2018. Long-term debt (excluding current portion) was in line with the 2018-end level of $347 million.
Net cash used for operations totaled $54 million at the end of the first quarter compared with net cash provided by operations of $31 million in the comparable period of 2018.
During the reported quarter, the company initiated $400-million accelerated share repurchase program and repurchased the remaining $38 million from its earlier $250-million stock repurchase authorization.
2019 View
Based on current plans and expectations, as well as certain costs that are likely to impact results, Louisiana-Pacific reiterated its full-year 2019 guidance. The company expects capital expenditure for 2019 in the range of $150-$180 million. It expects long-term growth at the lower end of the guided range of 12-14%, owing to flat housing starts.
Strategic Update
Louisiana-Pacific reaffirms its long-term SmartSide Strand revenue growth target of 12-14%, backed by continued growth opportunities in the business. The company expects EBITDA to grow $75 million within 2021, aided by operational improvement initiatives, supply-chain optimization and transition of management structure.
Of the EBITDA growth, $40 million is anticipated from sustainable development in overall equipment effectiveness (OEE) in Siding and OSB mills, nearly $25 million from supply-chain optimization, and $10 million from its investment in line management and infrastructure optimization.
Zacks Rank & Other Peer Releases
Currently, Louisiana-Pacific holds a Zacks Rank #4 (Sell).
United Rentals (URI - Free Report) reported first-quarter 2019 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate, as well as improved on a year-over-year basis. Adjusted earnings of $3.31 per share beat the consensus mark of $3.06 by 8.3% and increased 15.3% from the prior-year figure of $2.87. Total revenues of $2.12 billion outpaced the consensus mark of $2.07 billion by 2.5%. The top line rose 22.1% year over year.
Owens Corning (OC - Free Report) reported first-quarter 2019 adjusted earnings of 54 cents per share, lagging the Zacks Consensus Estimate of 56 cents by 3.6%. Also, net sales of $1.67 billion missed analysts’ expectation of $1.69 billion by 1.5% in the reported quarter. Moreover, both the top and bottom lines decreased 34.1% and 1%, respectively, on a year-over-year basis.
Masco Corp. (MAS - Free Report) reported first-quarter 2019 adjusted earnings of 44 cents per share, missing the consensus mark of 47 cents by 6.4%. Also, total net sales of $1,908 million fell short of analysts’ expectation of $2,007 million by 4.9%. Moreover, on a year-over-year basis, adjusted earnings and net sales slipped 2.2% and 0.6%, respectively. Also, net sales (excluding acquisitions and currency) declined 2% from the prior-year quarter.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
Image: Bigstock
Louisiana-Pacific (LPX) Q1 Earnings & Revenues Lag, Down Y/Y
Louisiana-Pacific Corporation (LPX - Free Report) reported first-quarter 2019 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Also, both the top and bottom lines deceased on a year-over-year basis due to increased macro environment headwinds.
The company reported adjusted earnings of 13 cents per share, missing the consensus mark of 16 cents by 18.8%. The reported earnings declined 79.4% from the year-ago figure of 63 cents. The downside can be attributed to macro environment headwinds, and higher cost and expenses.
Louisiana-Pacific’s net sales came in at $582 million, which lagged analysts’ expectation of $593.6 million by 2%. The said figure decreased 15.8% from $691.3 million on a year-over-year basis. Lower OSB prices and softness in EWP sales negatively impacted the company’s top-line performance.
Louisiana-Pacific Corporation Price, Consensus and EPS Surprise
Louisiana-Pacific Corporation Price, Consensus and EPS Surprise | Louisiana-Pacific Corporation Quote
Operating Highlights
Gross profit during the quarter was $81 million, declining 54.2% year over year. Selling, general and administrative expenses, as a percentage of revenues, increased 241 basis points (bps) to 9.79% from a year ago.
Adjusted EBITDA from continuing operations totaled $58 million in the quarter, down 63.5% from $159 million recorded in the prior-year period. Adjusted EBITDA margin also contracted 1300 bps to 10% from 23% in the year-ago quarter.
Segmental Analysis
Siding: The segment’s sales came in at $236 million, 4% higher than the prior-year figure of $227 million. However, adjusted EBITDA of $42 million decreased 6.7% from the year-ago period. Particularly in the LP SmartSide Trim & Siding business, revenues improved 13% from the prior-year level during the quarter.
Oriented Strand Board or OSB: Sales at the OSB segment deteriorated 33.5% year over year to $208 million. Moreover, adjusted EBITDA during the reported quarter fell significantly to $8 million from $105 million in the year-ago period due to reduced selling prices. Notably, volume of Structural Solutions (value-added OSB) increased to 40% of total OSB sold. However, overall OSB price realization dropped 29% year over year.
Engineered Wood Products (EWP): EWP sales declined 14.2% year over year to $90 million in the quarter. However, adjusted EBITDA improved 40% from the prior-year quarter to $7 million.
South America: The segment’s sales grew 7.1% year over year to $45 million. However, adjusted EBITDA of $10 million fell 9.1% from the year-ago quarter.
Financials
As of Mar 31, 2019, Louisiana-Pacific had cash and cash equivalents of $361 million compared with $878 million at the end of 2018. Long-term debt (excluding current portion) was in line with the 2018-end level of $347 million.
Net cash used for operations totaled $54 million at the end of the first quarter compared with net cash provided by operations of $31 million in the comparable period of 2018.
During the reported quarter, the company initiated $400-million accelerated share repurchase program and repurchased the remaining $38 million from its earlier $250-million stock repurchase authorization.
2019 View
Based on current plans and expectations, as well as certain costs that are likely to impact results, Louisiana-Pacific reiterated its full-year 2019 guidance. The company expects capital expenditure for 2019 in the range of $150-$180 million. It expects long-term growth at the lower end of the guided range of 12-14%, owing to flat housing starts.
Strategic Update
Louisiana-Pacific reaffirms its long-term SmartSide Strand revenue growth target of 12-14%, backed by continued growth opportunities in the business. The company expects EBITDA to grow $75 million within 2021, aided by operational improvement initiatives, supply-chain optimization and transition of management structure.
Of the EBITDA growth, $40 million is anticipated from sustainable development in overall equipment effectiveness (OEE) in Siding and OSB mills, nearly $25 million from supply-chain optimization, and $10 million from its investment in line management and infrastructure optimization.
Zacks Rank & Other Peer Releases
Currently, Louisiana-Pacific holds a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Rentals (URI - Free Report) reported first-quarter 2019 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate, as well as improved on a year-over-year basis. Adjusted earnings of $3.31 per share beat the consensus mark of $3.06 by 8.3% and increased 15.3% from the prior-year figure of $2.87. Total revenues of $2.12 billion outpaced the consensus mark of $2.07 billion by 2.5%. The top line rose 22.1% year over year.
Owens Corning (OC - Free Report) reported first-quarter 2019 adjusted earnings of 54 cents per share, lagging the Zacks Consensus Estimate of 56 cents by 3.6%. Also, net sales of $1.67 billion missed analysts’ expectation of $1.69 billion by 1.5% in the reported quarter. Moreover, both the top and bottom lines decreased 34.1% and 1%, respectively, on a year-over-year basis.
Masco Corp. (MAS - Free Report) reported first-quarter 2019 adjusted earnings of 44 cents per share, missing the consensus mark of 47 cents by 6.4%. Also, total net sales of $1,908 million fell short of analysts’ expectation of $2,007 million by 4.9%. Moreover, on a year-over-year basis, adjusted earnings and net sales slipped 2.2% and 0.6%, respectively. Also, net sales (excluding acquisitions and currency) declined 2% from the prior-year quarter.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>