Louisiana-Pacific Corporation Just Recorded A 45% EPS Beat: Here's What Analysts Are Forecasting Next

Louisiana-Pacific Corporation (NYSE:LPX) just released its third-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 6.0% to hit US$722m. Louisiana-Pacific also reported a statutory profit of US$1.28, which was an impressive 45% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Louisiana-Pacific

After the latest results, the eleven analysts covering Louisiana-Pacific are now predicting revenues of US$3.04b in 2025. If met, this would reflect a satisfactory 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to drop 10% to US$5.34 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.03b and earnings per share (EPS) of US$5.04 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.2% to US$109. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Louisiana-Pacific analyst has a price target of US$136 per share, while the most pessimistic values it at US$67.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Louisiana-Pacific's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 3.4% growth on an annualised basis. That is in line with its 3.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 4.1% annually. So although Louisiana-Pacific is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Louisiana-Pacific's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Louisiana-Pacific going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Louisiana-Pacific that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.