Q3 2024 Earnings Summary
Reported on Nov 5, 2024 (Before Market Open)
Pre-Earnings Price$101.14Last close (Nov 4, 2024)
Post-Earnings Price$105.55Open (Nov 5, 2024)
Price Change
$4.41(+4.36%)
- LP expects to outperform the flat market for new construction starts in 2025, aiming for growth rates of 8% to 10%, similar to pre-COVID levels, due to strong momentum and increasing product credibility.
- LP's SmartSide siding products are gaining market share owing to their superior value proposition over competitors, leading to continued growth despite a competitive environment.
- The company is expanding its distribution channels and investing in additional capacity to meet growing demand, indicating confidence in future growth and potential for increased revenues.
- The company's Q4 Siding revenue guidance implies an unusually steep sequential decline of approximately 13%, suggesting a potential reversal in recent outperformance and indicating slowing demand in the market.
- LP is significantly increasing capital expenditures for new Siding capacity, with expected CapEx between $350 million and $375 million next year, raising concerns about overinvestment ahead of actual demand and the risk of underutilization if market conditions weaken.
- Competitive pressures from fiber cement and vinyl siding producers are leading LP to make pricing concessions to secure business, which may impact margins in an already competitive environment.
Research analysts covering LOUISIANA-PACIFIC.