Earnings wrap: LP, BioMimetic

Manufacturer's numbers don't meet the Street, lower R&D spending boosts biotech

A more buoyant housing market helped Louisiana-Pacific post strong numbers in the third quarter, but the company's shares fell because earnings per share came up short of analysts' estimates.

Downtown-based LP said it earned $31.3 million in the three months ended Sept. 30. That reversed a loss of more than $65 million a year ago, when the manufacturer of building supplies took a large impairment charge. Revenues rose by a third to $468 million, and operating margins came in at 9.3 percent, helped by prices of its mainstay oriented strand board products jumping 50 percent.

But earnings per share came in at 22 cents, four cents lower than analysts had been looking for. That had investors pushing down the company's stock (Ticker: LPX) by more than 4 percent at about 11 a.m. Year to date, the shares are still up more than 90 percent.

“While housing signs look very favorable, we are certainly cognizant of potential headwinds including a slowing global economy, an uncertain political and fiscal environment and slow job creation,” said CEO Curt Stevens. “Our plan is to do what is necessary to be ready to satisfy increasing demand for our products which emerges within this broader context and respond accordingly.”

Shares of BioMimetic Therapeutics were doing much better Tuesday morning after the biomedical technology company reported a smaller-than-expected loss.

Franklin-based BioMimetic said it lost $4.6 million, or 16 cents per share, during the quarter, compared to 25 cents a year ago. The Street had expected the company to lose 21 cents per share. That outperformance had shares of the company (Ticker: BMTI) up more than 7 percent to about $4.10.

Sales for the quarter jumped 60 percent from a year ago to almost $690,000, while research and development spending fell to $1.9 million from $3.6 million. President and CEO Sam Lynch said his team is moving forward with its product development and approval processes on various fronts and expects the Food and Drug Administration to respond to its Augment Bone Graft application by year's end.

"While we await the FDA’s complete response, we believe we are in a position to continue to advance regulatory approvals and subsequent commercialization of Augment in other parts of the world, the commercialization of Augmatrix in the U.S. and our other product development programs such as Augment Injectable Bone Graft and Augment Chronic Tendinopathy in the sports medicine area," Lynch said. "If approved by the appropriate regulatory authorities, we believe our deep product pipeline will provide new, effective and less invasive treatment options for the repair of bone, tendons and ligaments."