By midafternoon, shares had added 6.7% to $18.25. Trading volume of 5.2 million exceeded its three-month daily average of 2.8 million.
The Tennessee-based company reported quarterly sales of $480 million, 6% higher than the year-ago quarter, and a 23% boost to full-year revenue of $2.1 billion. Analysts surveyed by Thomson Reuters had forecast fourth-quarter and full-year sales of $456 million and $2.08 billion, respectively.
"At about 920,000 housing starts in 2013, LP shipped record volumes of our SmartSide siding and a variety of value-added [oriented-strand board] products. This performance bodes well for the future as housing continues to improve," said CEO Curt Stevens in a statement.
Investor sentiment for construction-exposed stocks has been high over the week, after building supplies company Owens Corning (OC) and construction machinery maker Deere & Co. (DE) reported positive growth in segments benefiting from a housing recovery.
Better-than-expected revenue reduced the impact of a quarterly loss of 5 cents a share, compared to net income of 18 cents a share in the year-ago quarter. The company said its largest segment, oriented-strand boards, saw volumes increase 17% while prices decreased 20%.
"The decrease in selling price unfavorably impacted operating results and adjusted EBITDA from continuing operations by approximately $55 million for the quarter as compared to the fourth quarter of 2012," the company said in a statement.
In response to market conditions, the company has indefinitely curtailed one of its structural panel products facilities. It still has 10 facilities in operation.