Leggett & Platt's Earnings Beat Last Year's by 45%

Leggett & Platt (NYSE: LEG  ) reported earnings on Oct. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Leggett & Platt met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.

Margins grew across the board.

Revenue details
Leggett & Platt logged revenue of $982.2 million. The five analysts polled by S&P Capital IQ anticipated sales of $985.8 million on the same basis. GAAP reported sales were 4.4% higher than the prior-year quarter's $940.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.45. The four earnings estimates compiled by S&P Capital IQ averaged $0.39 per share. GAAP EPS of $0.45 for Q3 were 45% higher than the prior-year quarter's $0.31 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 20.9%, 280 basis points better than the prior-year quarter. Operating margin was 10.7%, 310 basis points better than the prior-year quarter. Net margin was 6.7%, 190 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $890.5 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $3.76 billion. The average EPS estimate is $1.37.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 197 members out of 237 rating the stock outperform, and 40 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give Leggett & Platt a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Leggett & Platt is outperform, with an average price target of $27.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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