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    LOUISIANA-PACIFIC (LPX)

    Q3 2024 Earnings Summary

    Reported on Feb 18, 2025 (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.

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