Manufacturing company Leggett & Platt (NYSE:LEG) will be reporting earnings tomorrow after market hours. Here’s what to expect.
Leggett & Platt met analysts’ revenue expectations last quarter, reporting revenues of $1.10 billion, down 6.3% year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations.
Is Leggett & Platt a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Leggett & Platt’s revenue to decline 7.8% year on year to $1.03 billion, a further deceleration from the 6.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Leggett & Platt has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Leggett & Platt’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mohawk Industries posted flat year-on-year revenue, beating analysts’ expectations by 4.1%, and VF Corp reported revenues up 1.9%, topping estimates by 1.2%. Mohawk Industries traded down 1.4% following the results while VF Corp was up 1.4%.
Read our full analysis of Mohawk Industries’s results here and VF Corp’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.7% on average over the last month. Leggett & Platt is down 2.7% during the same time and is heading into earnings with an average analyst price target of $12 (compared to the current share price of $9.85).
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