Louisiana-Pacific Corp ( LPX ) shares are trading higher after first-quarter 2024 results exceeded Wall Street expectations.

LPX reported net sales growth of 24% year-over-year to $724 million, beating the consensus of $688.85 million.

The company saw solid demand in the Siding sector during the quarter, with increased volumes and 9% YoY revenue growth to $361 million.

Oriented Strand Board (OSB) net sales increased by 65% to $313 million, attributed to a $62 million increase in OSB prices and a $56 million increase in sales volumes.

Adjusted EPS was $1.53, up from $0.34 YoY, beating the consensus of $1.12.

Adjusted EBITDA was $182 million, up from $66 million Y/Y, and the margin expanded to 25.1% from 11.3%.

The gross margin expanded by 1,226 bps to 29.6%, and the operating margin expanded by 1,490 bps to 20%.

Net cash provided by operating activities for the quarter totaled $105 million compared to cash used of $(119) million a year ago. Cash and equivalents totaled $244 million at the end of the quarter.

“The first quarter saw robust demand for Siding and OSB, with increased volume, including record ExpertFinish and BuilderSeries volume, higher commodity prices, and improved operating efficiency driving margin expansion. While macro uncertainties remain, strong demand for SmartSide and Structural Solutions has continued in the second quarter. As such, we are increasing our second quarter and full-year outlook,” commented LP Chairperson and Chief Executive Officer Brad Southern. 

2Q 2024 Outlook: LPX expects Siding net sales growth of 20%-25% YoY, and consolidated Adjusted EBITDA of $220 million-$240 million.

2024 Outlook, raised: The company expects Siding net sales to grow by 11%-13% (prior 8%-10% YoY) and sees consolidated Adjusted EBITDA of $655 million- $685 million (prior $495 million to $525 million) and capital expenditures of $200 million to $220 million.

Price Action: LPX shares are trading higher by 8.39% at $79.10 premarket at the last check Wednesday.