Louisiana-Pacific Corp. (NYSE: LPX) reported Q3 EPS of $0.08, $0.12 worse than the analyst estimate of $0.20. Revenue for the quarter came in at $603 million versus the consensus estimate of $604 million.

Third Quarter Results

• Net sales for the third quarter of $603 million, 18 percent lower than the prior year.
• LP® SmartSide® Strand sales increased 13 percent compared to the third quarter of 2018 and 10 percent for the first nine months of 2019.
• Overall OSB commodity price realization dropped 41 percent from the third quarter of 2018 and 42 percent from the first nine months of 2018.
• Net income attributed to LP for the third quarter was $2 million ($0.02 per diluted share) and $46 million ($0.36 per diluted share) for the first nine months of 2019.
• Non-GAAP adjusted income from continuing operations was $10 million ($0.08 per diluted share) for the third quarter of 2019 and $40 million ($0.32 per diluted share) for the first nine months of 2019.
• Adjusted EBITDA for the third quarter was $49 million and $160 million for the first nine months of 2019.

“Through the third quarter, despite starts below last year, our sales and operations teams executed very well,” said Brad Southern, LP Chief Executive Officer. “The Siding segment achieved a second consecutive record quarter for LP® SmartSide® Strand revenue while also setting a record quarter for safety. The OSB segment had its lowest cash cost of production in two years while balancing supply and demand in a difficult market. In the third quarter, we reduced finished goods inventory by $29 million, which contributed to excellent cash flow for the quarter, and reached $28 million in year to date efficiency savings. This means we remain ahead of pace to achieve our 2021 targets.”

2019 Guidance

LP’s guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below in LP’s “Forward-Looking Statements.”

• Given its current outlook, LP expects capital expenditures for 2019 to be less than $160 million.
• LP reaffirms its 2019 SmartSide® Strand sales growth target of 10 percent and its long-term growth target of 10-12 percent.

For earnings history and earnings-related data on Louisiana-Pacific Corp. (LPX) click here.