) is set to report second quarter 2013 results on Aug 6. Last
quarter, it posted in-line results. Let's see how things are
shaping up for this announcement.
Factors to Consider This Quarter
Though the housing market continues to gain momentum,
Louisiana-Pacific's overall results have not been great due to
persistent volatility in its Oriental Strand Board (OSB) segment.
The company's financial performance is also susceptible to
changes in prices of OSB, lumber, plywood and other wood
products; the prices of which are falling recently.
Louisiana-Pacific Corporation is engaged in the manufacture and
distribution of oriental strand board, engineered wood products,
siding, decking, molding and wall coverings. As the prices
of finished wood products have declined recently, it is expected
to impact in the company's top line in the upcoming quarter.
Our proven model does not conclusively show that
Louisiana-Pacific is likely to beat earnings this quarter. That
is because a stock needs to have both a positive earnings
expected surprise prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Negative Zacks ESP:
Louisiana-Pacific has an ESP of -3.23%.
Zacks Rank #3 (Hold):
Louisiana-Pacific's Zacks Rank #3 (Hold) lowers the predictive
power of ESP because the Zacks Rank #3 when combined with a
negative ESP makes positive surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and #5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
We see likely earnings beat coming from these 3 companies in the
LOUISIANA PAC (LPX): Free Stock Analysis
MASCO (MAS): Free Stock Analysis Report
PGT INC (PGTI): Free Stock Analysis Report
RYLAND GRP INC (RYL): Free Stock Analysis
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), Earnings ESP of +4.17% and a Zacks Rank #2 (Buy)
Ryland Group, Inc.
), Earnings ESP of +1.03% and a Zacks Rank #2 (Buy)
), Earnings ESP of +8.33% and a Zacks Rank #3 (Hold)