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Louisiana-Pacific Corporation (NYSE:LPX) investors will be delighted, with the company turning in some strong numbers with its latest results. Louisiana-Pacific beat earnings, with revenues hitting US$724m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
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 expected to plunge 23% to US$4.47 in the same period. Before this earnings report, the analysts had been forecasting 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 substantial drop in 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. There are some variant perceptions on Louisiana-Pacific, with the most bullish analyst valuing it at US$137 and the most bearish at US$71.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Louisiana-Pacific's past performance and to peers in the same 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. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.6% per year. It's pretty clear that Louisiana-Pacific's revenues are expected to perform substantially worse than the wider industry.