Louisiana-Pacific tumbles after Q4 results, outlook
19/02/2025 18:16
(Updates, adds context of U.S.housing data, changes headline)
** Shares of Louisiana-Pacific LPX.N down 9.9% at $101.81 on
Weds after building products firm's qtrly results and guidance
fail to enthuse
** LPX shares on course for biggest one-day pct drop since
Aug 2, 2023. Stock falls as low as $97.90, lowest since late Oct
** Tennessee-based co early Weds posted Q4 sales of $681 mln, up
3% y/y, and adj EPS of $1.03. Analysts expected rev of $666.8
mln and earnings of $0.86, per LSEG data
** Its siding business sales rose 9% from a year ago to $362
mln, while sales of oriented strand board (OSB), used for floors
and roofs, decreased 2% to $267 mln
** Regarding its outlook, LPX projected current qtr siding
sales of $390-$400 mln (+9%-11% growth) and 2025 siding sales of
$1.65-$1.7 bln (+7%-9% growth)
** It anticipates adj EBITDA of $130-$150 mln in Q1 and
$615-$635 mln for the full year
** In a flash research note, TD Cowen said while Q4 results
were near its expectations, Q1 EBITDA guidance implies a
slowdown in OSB segment contributions
** Latest housing starts data on Weds could also be weighing on
LPX shares. U.S. single-family homebuilding fell sharply last
month, partially due to brutal weather conditions across the
country, with a rebound seen limited by higher costs from
tariffs and elevated mortgage rates
** PHLX Housing index .HGX off >2% on Weds with shares of
luxury builder Toll Brothers TOL.N the biggest losers, down
>7%, after it posted qtrly rev, profit below consensus
** Of 10 brokerages covering LPX, recommendation breakdown
is 3 "buy", 5 "hold" and 2 "sell"; median PT of $123 up from
$117 on Nov 19 - LSEG
** With move on the session, shares dip into the red YTD by
~2%, but are up 50% over the past 12 months
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))