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Does The Street Have Leggett & Platt Figured Out?

By Seth Jayson - Updated Apr 10, 2017 at 1:44PM

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Checking expectations

Leggett & Platt (NYSE: LEG) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Leggett & Platt's revenues will grow 1.7% and EPS will increase 26.7%.

The average estimate for revenue is $963.3 million. On the bottom line, the average EPS estimate is $0.38.

Revenue details
Last quarter, Leggett & Platt logged revenue of $853.0 million. GAAP reported sales were 0.1% lower than the prior-year quarter's $854.1 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.32. GAAP EPS of $0.50 for Q4 were much higher than the prior-year quarter's $0.06 per share.

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

Recent performance
For the preceding quarter, gross margin was 20.8%, 360 basis points better than the prior-year quarter. Operating margin was 8.8%, 320 basis points better than the prior-year quarter. Net margin was 8.6%, 760 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.83 billion. The average EPS estimate is $1.62.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 221 members out of 259 rating the stock outperform, and 38 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 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 hold, with an average price target of $28.50.

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Stocks Mentioned

Leggett & Platt, Incorporated Stock Quote
Leggett & Platt, Incorporated
LEG
$39.81 (2.29%) $0.89

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