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Leggett & Platt Inc.

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Leggett reported better-than-expected results in the second quarter of 2018, buoyed by solid contribution from several businesses including Automotive, Bedding, Adjustable Bed, Aerospace, Geo Components and Work Furniture. Although sales increased 11% year over year, earnings dipped 2%. Soft demand for Home Furniture and Fashion Bed partially offset the positives. Higher sales growth was more than offset primarily by higher raw material costs as well as the timing of the pricing lag the company experiences when passing along the higher costs. The company trimmed its sales and EPS guidance for 2018 to account for challenges in its furniture products segment due to weaker demand and foreign competition. Leggett shares dipped 9.9% year to date. Over the past seven days, earnings estimates for 2018 and 2019 have been trending downward , reflecting analysts’ concern over the stock’s future earnings potential.

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