Why Louisiana-Pacific Stock Fell in August
A sluggish housing market ate into results at Louisiana-Pacific (NYSE: LPX), and investors weren't in any mood to wait out the downturn. Shares of Louisiana-Pacific tumbled in the days following its early August earnings report and never recovered as the month went on, finishing August down 17.9%, according to data provided by S&P Global Market Intelligence.
Wood products and building-supply manufacturer Louisiana-Pacific saw net sales fall 46% year over year in the second quarter, driven by lower volumes and declining prices for the company's oriented strand board (OSB). Overall, the company earned $0.55 per share on sales of $611 million in the quarter, missing Wall Street's expectations for $0.66 per share in earnings on sales of $665 million.
It was a choppy quarter, including charges related to Louisiana-Pacific's decision to exit an off-site framing operation. But net sales of OSB decreased by 66%, and siding sales were down 11%, a reflection of weak demand from the housing and renovation markets due to higher interest rates.
Source Fool.com
