) is set to unveil its third quarter 2012 results on November 6,
2012, before the market opens. The Zacks Consensus Estimate for
third quarter earnings is pegged at 25 cents on revenues of $475
Second Quarter 2012 Recap
Louisiana-Pacific Corporation reported adjusted earnings per
share (EPS) of 2 cents per share from continuing operations in
the second quarter of 2012, missing the Zacks Consensus Estimate
of 4 cents. Results, however, improved from the prior-year
quarter loss of 24 cents.
Net sales in the quarter improved 18% to $428 million, owing to
higher volumes at Oriental Strand Board (OSB) and Siding segments
and price increases at the OSB segment. Revenues also beat the
Zacks Consensus Estimate of $419 million attributable to strong
performance of the OSB and Siding segments.
Agreement of Estimate Revisions
Of the 13 estimates for the third quarter of 2012, 1 was revised
upward in the last 7 days. Over the last 30 days, 7 out of the 13
estimates moved upwards.
Of the 12 estimates for full year 2012, 2 were revised upward in
the last 7 days. Over the last 30 days, 7 out of 12 estimates
were revised upward for the full year 2012.
The upward movement of the estimates has been driven by price
appreciation in the OSB segment in September 2012.
Magnitude of Estimate Revisions
The Zacks Consensus Estimate for the third quarter of fiscal 2012
increased by a penny to 25 cents over the last 7 days. The
estimate has moved up 7 cents from 18 cents over the last 30
The Zacks Consensus Estimate for fiscal 2012 earnings has
increased by 3 cents to 30 cents over the last 7 days. The
estimate increased by 11 cents from 19 cents over the last 30
A peer of
), Louisiana-Pacific has missed the Zacks Consensus Estimate in
three out of the last four quarters. The company results beat the
Zacks Consensus Estimate in the first quarter of 2012. The
surprise average is (16.69) %.
We appreciate the growth in price and volume, exhibited by the
OSB segment and expect segment volumes to grow further in 2012
and 2013. We also like the strong liquidity position of the
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We currently have an Outperform recommendation on
Louisiana-Pacific. The stock carries a Zacks #1 Rank (short-term
'Strong Buy' rating).