Leggett & Platt (LEG) Q3 Earnings: What To Expect

Manufacturing company Leggett & Platt (NYSE:LEG) will be reporting results this Monday after market hours. Here’s what to expect.

Leggett & Platt met analysts’ revenue expectations last quarter, reporting revenues of $1.06 billion, down 6.3% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ estimates.

Is Leggett & Platt a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Leggett & Platt’s revenue to decline 6.9% year on year to $1.03 billion, in line with the 6.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Leggett & Platt has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Leggett & Platt’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Mohawk Industries delivered year-on-year revenue growth of 1.4%, beating analysts’ expectations by 1.6%, and Nike reported revenues up 1.1%, topping estimates by 6.5%. Mohawk Industries traded down 7% following the results while Nike was up 6.5%.

Read our full analysis of Mohawk Industries’s results here and Nike’s results here.

Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Leggett & Platt is up 3% during the same time and is heading into earnings with an average analyst price target of $9.67 (compared to the current share price of $9.04).

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