Louisiana-Pacific Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Louisiana-Pacific Corporation (NYSE:LPX) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$724m, some 5.4% above estimates, and statutory earnings per share (EPS) coming in at US$1.48, 31% ahead of expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Louisiana-Pacific

Following the latest results, Louisiana-Pacific's ten analysts are now forecasting revenues of US$2.98b in 2024. This would be a meaningful 9.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 55% to US$5.73. In the lead-up to this report, the analysts had been modelling revenues of US$2.87b and earnings per share (EPS) of US$4.69 in 2024. So it seems there's been a definite increase in optimism about Louisiana-Pacific's future following the latest results, with a considerable lift to the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.6% to US$88.09per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Louisiana-Pacific at US$105 per share, while the most bearish prices it at US$62.00. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Louisiana-Pacific's growth to accelerate, with the forecast 13% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Louisiana-Pacific 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Louisiana-Pacific analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Louisiana-Pacific you should know about.

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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.