Shares of Louisiana-Pacific Corporation (LPX) soared nearly 6% in pre-market trading on November 5, 2024, driven by the company's strong third-quarter 2024 earnings performance and upbeat outlook.

The building products company reported record sales of $420 million for its high-margin siding segment, reflecting a 22% year-over-year increase fueled by robust demand and higher volumes and prices. The siding segment's adjusted EBITDA also hit a new high, underscoring Louisiana-Pacific's successful growth initiatives in this area.

While the oriented strand board (OSB) segment faced lower prices during the quarter, its sales volumes rose 2% compared to the prior year. Overall, Louisiana-Pacific's adjusted earnings of $1.22 per share for Q3 2024 surpassed analysts' consensus estimate of $0.88, with total revenue of $722 million also beating expectations.

Encouraged by the strong performance, the company raised its full-year 2024 adjusted EBITDA guidance to $655-$675 million, up from the previous range of $580-$620 million. Louisiana-Pacific also announced a quarterly cash dividend of $0.26 per share and repurchased $73 million worth of shares during the quarter.

Analysts praised Louisiana-Pacific's execution, with one noting that the results underscore the quality of the company's assets and management's expertise. With a strong growth trajectory in its high-margin siding business and an upbeat outlook, the company's stock is expected to continue its upward momentum.