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In the last reported quarter, the company’s earnings and trade sales missed the Zacks Consensus Estimate by 7.7% and 5.5%, respectively, and decreased 30.8% and 9% from the year-ago quarter.
Its earnings missed the consensus mark in three of the trailing four quarters and beat on one occasion, with an average surprise of 3.9%.
Trend in Estimate Revision
The Zacks Consensus Estimate for Leggett’s fourth-quarter 2023 earnings has remained stable at 26 cents per share over the past 60 days. The estimated figure indicates a 33.3% decline from the year-ago earnings of 39 cents per share.
Leggett & Platt, Incorporated Price and EPS Surprise
The consensus mark for revenues is $1.1 billion, suggesting an 8.3% fall year over year.
Factors to Note
Leggett’s business is expected to have lackluster trade sales and earnings in fourth-quarter 2023, owing to soft demand across most of the markets served, primarily in the Bedding Products unit as well as Furniture, Flooring & Textile Products segment accompanied by the ongoing inflationary market.
The company expects business in the fourth quarter to be slightly lower than the year-ago period, primarily due to the above-mentioned headwinds. The supply-related headwinds, raw material-related price decrease and currency impact are likely to have added to the woes.
For the fourth quarter, our model suggests Bedding Products’ trade sales (accounting for 37.4% of third-quarter 2023 total net sales) to decline 21.8% year over year to $408.4 million. We expect the Furniture, Flooring & Textile Products’ (comprising 31.7% of total net sales) net sales to fall 6.4% to $346.9 million.
For Specialized Products (comprising 27.2% of total net sales), we expect net sales to rise 11.3% to $337 million.
Nonetheless, its long-term strategic plan, acquisitions and shareholders’ moves are commendable and are likely to have aided the company’s fourth-quarter 2023.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Leggett this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you will see below.
Earnings ESP: It has an Earnings ESP of -0.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Leggett currently carries a Zacks Rank #2.
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
STRA’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, with the average surprise being 7.3%. Earnings for the to-be-reported quarter are expected to grow 75.6% year over year.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +1.48% and a Zacks Rank #3.
CHH’s earnings topped the consensus mark in three of the last four quarters and missed the same in the other one, with the average surprise being 5.2%. Earnings for the to-be-reported quarter are expected to increase 7.1% year over year.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +1.73% and a Zacks Rank #3.
MAR’s earnings topped the consensus mark in each of the last four quarters, with the average earnings surprise being 5.6%. Earnings for the to-be-reported quarter are likely to grow 8.2% year over year.
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Leggett (LEG) to Report Q4 Earnings: Here's What to Expect
Leggett & Platt, Incorporated (LEG - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 8, after market close.
In the last reported quarter, the company’s earnings and trade sales missed the Zacks Consensus Estimate by 7.7% and 5.5%, respectively, and decreased 30.8% and 9% from the year-ago quarter.
Its earnings missed the consensus mark in three of the trailing four quarters and beat on one occasion, with an average surprise of 3.9%.
Trend in Estimate Revision
The Zacks Consensus Estimate for Leggett’s fourth-quarter 2023 earnings has remained stable at 26 cents per share over the past 60 days. The estimated figure indicates a 33.3% decline from the year-ago earnings of 39 cents per share.
Leggett & Platt, Incorporated Price and EPS Surprise
Leggett & Platt, Incorporated price-eps-surprise | Leggett & Platt, Incorporated Quote
The consensus mark for revenues is $1.1 billion, suggesting an 8.3% fall year over year.
Factors to Note
Leggett’s business is expected to have lackluster trade sales and earnings in fourth-quarter 2023, owing to soft demand across most of the markets served, primarily in the Bedding Products unit as well as Furniture, Flooring & Textile Products segment accompanied by the ongoing inflationary market.
The company expects business in the fourth quarter to be slightly lower than the year-ago period, primarily due to the above-mentioned headwinds. The supply-related headwinds, raw material-related price decrease and currency impact are likely to have added to the woes.
For the fourth quarter, our model suggests Bedding Products’ trade sales (accounting for 37.4% of third-quarter 2023 total net sales) to decline 21.8% year over year to $408.4 million. We expect the Furniture, Flooring & Textile Products’ (comprising 31.7% of total net sales) net sales to fall 6.4% to $346.9 million.
For Specialized Products (comprising 27.2% of total net sales), we expect net sales to rise 11.3% to $337 million.
Nonetheless, its long-term strategic plan, acquisitions and shareholders’ moves are commendable and are likely to have aided the company’s fourth-quarter 2023.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Leggett this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you will see below.
Earnings ESP: It has an Earnings ESP of -0.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Leggett currently carries a Zacks Rank #2.
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
Strategic Education, Inc. (STRA - Free Report) has an Earnings ESP of +0.18% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
STRA’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, with the average surprise being 7.3%. Earnings for the to-be-reported quarter are expected to grow 75.6% year over year.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +1.48% and a Zacks Rank #3.
CHH’s earnings topped the consensus mark in three of the last four quarters and missed the same in the other one, with the average surprise being 5.2%. Earnings for the to-be-reported quarter are expected to increase 7.1% year over year.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +1.73% and a Zacks Rank #3.
MAR’s earnings topped the consensus mark in each of the last four quarters, with the average earnings surprise being 5.6%. Earnings for the to-be-reported quarter are likely to grow 8.2% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.