Shares of Louisiana-Pacific (LPX) tumbled 6.13% in pre-market trading on Wednesday after the engineered wood products maker reported second-quarter results that fell short of Wall Street expectations.
The company posted adjusted earnings of $0.40 per share, missing the consensus estimate of $0.60 by 33%. Adjusted EBITDA came in at $79 million, well below the $99.1 million analysts had projected. Net sales declined 12% year-over-year to $664 million, also missing forecasts. The profit decline was driven by an 11% drop in Siding volumes, lower OSB prices and volumes, and higher raw material, freight, and labor costs.
Despite the disappointing quarter, Louisiana-Pacific reaffirmed its full-year Siding net sales guidance of $1.65 billion to $1.67 billion and said it expects the segment to return to volume and revenue growth in the third quarter, with Q3 Siding sales projected at $460 million to $470 million.