Louisiana-Pacific Q4 Earnings Top Estimates

Louisiana-Pacific Corp LPX reported fourth-quarter FY21 sales growth of 15% year-on-year, to $992 million, beating the consensus of $912.74 million.
Sales by segments: Siding $281 million (+9% Y/Y), Oriented Strand Board $470 million (+10% Y/Y), Engineered Wood Products $157 million (+45.4% Y/Y), and South America $63 million (+26% Y/Y).
The gross margin contracted by 690 bps to 33.9%. The operating income increased 14.5% Y/Y to $254 million with an operating margin of 25.6%.
Adjusted EPS of $2.24 beat the consensus of $2.02. Adjusted EBITDA decreased 7% Y/Y to $305 million.
Louisiana-Pacific generated cash from operating activities of $201 million in the quarter, compared to $321 million a year ago. It had cash and equivalents of $358 million as of December 31, 2021.
Outlook: Louisiana-Pacific expects FY22 Siding Solutions revenue growth greater than 15%. It expects capital expenditures for FY22 of $400 million - $430 million.
The company sees Q1 siding solutions sales growth of 10% Y/Y and OSB revenue to be 40% higher Q/Q. It expects Q1 Adjusted EBITDA to be greater than $500 million.
Price Action: LPX shares traded higher by 1.68%% at $69.13 on the last check Tuesday.

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