Results: Louisiana-Pacific Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Louisiana-Pacific Corporation (NYSE:LPX) just kicked off its latest quarterly results with some very strong numbers. Louisiana-Pacific beat earnings, with revenues hitting US$724m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Louisiana-Pacific's eleven analysts currently expect revenues in 2025 to be US$2.91b, approximately in line with the last 12 months. Statutory earnings per share are forecast to tumble 23% to US$4.47 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.98b and earnings per share (EPS) of US$5.18 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

See our latest analysis for Louisiana-Pacific

Despite the cuts to forecast earnings, there was no real change to the US$104 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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$137 per share, while the most pessimistic values it at US$71.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 1.3% annualised decline to the end of 2025. That is a notable change from historical growth of 0.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.6% annually for the foreseeable future. It's pretty clear that Louisiana-Pacific's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Louisiana-Pacific going out to 2027, and you can see them free on our platform here.

You can also see whether Louisiana-Pacific is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.