Leggett & Platt
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Leggett & Platt met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Leggett & Platt reported revenue of $940.9 million. The five analysts polled by S&P Capital IQ hoped for revenue of $936.6 million. Sales were 6.5% higher than the prior-year quarter's $866.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.31. The six earnings estimates compiled by S&P Capital IQ predicted $0.36 per share on the same basis. GAAP EPS of $0.06 for Q3 were 71% lower than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 16.7%, 100 basis points worse than the prior-year quarter. Operating margin was 5.2%, 120 basis points worse than the prior-year quarter. Net margin was 1.0%, 290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $827.3 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $3.61 billion. The average EPS estimate is $1.18.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 189 members out of 231 rating the stock outperform, and 42 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Leggett & Platt a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Leggett & Platt is hold, with an average price target of $27.
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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. 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.