Manufacturing company Leggett & Platt (NYSE:LEG) will be reporting earnings this Thursday after the bell. Here’s what to look for.
Leggett & Platt met analysts’ revenue expectations last quarter, reporting revenues of $1.02 billion, down 6.8% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ FF&T revenue estimates.
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 6.1% year on year to $1.06 billion, improving from the 7.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 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 five times over the last two years.
Looking at Leggett & Platt’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Purple’s revenues decreased 12.6% year on year, meeting analysts’ expectations, and Mohawk Industries reported flat revenue, topping estimates by 2.2%. Mohawk Industries traded up 4.2% following the results.
Read our full analysis of Purple’s results here and Mohawk Industries’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 7.5% on average over the last month. Leggett & Platt is up 12.7% during the same time and is heading into earnings with an average analyst price target of $10.33 (compared to the current share price of $10.05).
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