pixelprof/E+ via Getty Images

pixelprof/E+ via Getty Images

Louisiana-Pacific (NYSE:LPX ) -8.4% in Tuesday's trading after missing estimates for Q2 adjusted earnings and revenues while issuing bearish guidance for its largest segment.

Q2 net income fell to $384M, or $4.28/share, from $498M, or $4.79/share, while revenues fell for the first time since Q2 2020, declining 3.3% Y/Y to $1.13B.

Louisiana-Pacific (LPX) said it is seeing some signs of reduced demand for its products, particularly its more specialized and higher value-added offerings

The company emphasized that overall demand remains healthy, with strong growth in its Siding segment, which set quarterly records across multiple metrics, including sales growth of 24% Y/Y to $356M; the Siding segment comprised nearly a third of the company's Q2 sales.

But Siding's strength was overshadowed by its Oriented Strand Board segment, where sales fell 14% Y/Y to $673M as prices fell 24%; OSB segment sales comprised 60% of the company's Q2 sales.

Although OSB prices stabilized in July, Louisiana-Pacific (LPX) still expects Q3 sales to decline by 40% Q/Q, while Siding growth is forecast to rise 20% Y/Y in Q3.

Louisiana-Pacific's (LPX) stock price return shows a 26% YTD decline but a 2% gain during the past year.