Louisiana-Pacific Corporation (NYSE:LPX) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

As you might know, Louisiana-Pacific Corporation (NYSE:LPX) recently reported its full-year numbers. The result was positive overall - although revenues of US$2.6b were in line with what the analysts predicted, Louisiana-Pacific surprised by delivering a statutory profit of US$2.46 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Louisiana-Pacific

Taking into account the latest results, the current consensus from Louisiana-Pacific's ten analysts is for revenues of US$2.77b in 2024. This would reflect a reasonable 7.2% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 60% to US$3.95. Before this earnings report, the analysts had been forecasting revenues of US$2.71b and earnings per share (EPS) of US$3.87 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of US$76.20, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Louisiana-Pacific analyst has a price target of US$85.00 per share, while the most pessimistic values it at US$54.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Louisiana-Pacific'shistorical trends, as the 7.2% annualised revenue growth to the end of 2024 is roughly in line with the 6.7% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.5% per year. So although Louisiana-Pacific is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 estimates - from multiple Louisiana-Pacific analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Louisiana-Pacific has 1 warning sign we think 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.