Louisiana-Pacific Second Quarter Earnings Sneak Peek

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Louisiana-Pacific Corporation (NYSE:LPX) will unveil its latest earnings on Tuesday, July 31, 2012. Louisiana-Pacific is engaged in the manufacture of building products. It operates in three segments: Oriented Strand Board, Siding, and Engineered Wood Products.

Louisiana-Pacific Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 4 cents per share, a swing from net loss of 24 cents in the year-earlier quarter. During the past three months, the average estimate has moved up from a loss of 10 cents. Between one and three months ago, the average estimate moved up. It has risen from a loss of one cent during the last month.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the first quarter, the company reported a loss of 6 cents per share versus a mean estimate of net loss of 15 cents per share. In the fourth quarter of the last fiscal year, the company missed estimates by 13 cents.

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A Look Back: In the first quarter, the company’s loss narrowed to a loss of $11.3 million (8 cents a share) from a loss of $23 million (18 cents) a year earlier, beating analyst expectations. Revenue rose 9% to $361.5 million from $331.7 million.

Wall St. Revenue Expectations: Analysts predict a rise of 15.4% in revenue from the year-earlier quarter to $418.1 million.

Stock Price Performance: Between April 30, 2012 and July 25, 2012, the stock price rose $1.35 (14.9%), from $9.05 to $10.40. The stock price saw one of its best stretches over the last year between November 9, 2011 and November 18, 2011, when shares rose for eight straight days, increasing 12.1% (+78 cents) over that span. It saw one of its worst periods between March 27, 2012 and April 10, 2012 when shares fell for 10 straight days, dropping 18.5% (-$1.84) over that span.

Key Stats:

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 1.6% in the fourth quarter of the last fiscal year after increasing in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.2 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 4.71 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 15.7% to $161.4 million while assets rose 3.3% to $678.2 million.

Analyst Ratings: With five analysts rating the stock a sell, two rating it as a buy and five rating it as a hold, there are indications of a bearish outlook.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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