On May 1st, Leggett & Platt (NYSE:LEG), a global innovation leader in diversified products for homes and offices, surpassed analysts’ estimates by revealing its first-quarter earnings of the year. The company reported thumping earnings per share (EPS) of $0.39, beating the projections of $0.26 by $0.13 for the quarter, against revenue that bounced back higher than anticipated with a consolidated sum of $1.21 billion compared to a forecasted value of only about $1.19 billion.
The hot topic from this announcement is that Leggett & Platt’s return on equity (ROE) was pegged at 16.83%, while recording a net margin of 5.42% – an impressive achievement considering the unfavorable situation caused by the pandemic last year. Despite witnessing an 8.2% decrease in revenue compared to the same quarter last year, it is worth commending how well-managed Leggett & Platt stood firm upon their feet during these trying market conditions.
Furthermore, Leggett & Platt has approved another quarterly dividend payment since its stellar earning release will be distributed on July 14th to investing shareholders on record as of June 15th, bearing a dividend value of $0.46 per share translating into an annual payout of nearly $1.84 and yield standing at about 5.76%. It indicates a favorable change from LEG’s previous predicted quarterly dividend distribution at $0.44 per share.
Leggett & Platt’s stock started trading at approximately $31.94 on Wednesday after earnings were published – showcasing how relatively healthy their financial position appears to stand in today’s volatile environment regarding liquidity crises.
As forecasted moving averages suggest – L&P’s “50-day simple moving average” is currently situated at around $31.55 while their “200-day simple moving average” stands around roughly ten percent higher around $33.35; however, as stated earlier, LEG has a 52-week high of $41.94 and a 52-week low of $30.05.
In conclusion, Leggett & Platt’s latest earnings report is further proof that their resilient position during these arduous pandemic-ridden conditions should be commended. Despite revenue drops during what was arguably the most challenging financial year on record, L&P managed to bounce back, exceed estimates and offer shareholders increased dividend payouts – which cements their reputation as one of the most reliable organizations in this sector currently and perhaps a worthwhile investment for those looking to diversify their portfolios into tangible consumer goods providers.
[bs_forecast_slider ticker=”LEG”]
Zacks Research Downgrades Leggett & Platt Q2 2023 Earnings Estimates
May 17, 2023 – Zacks Research, a financial analysis firm, has downgraded the Q2 2023 earnings per share (EPS) estimates for Leggett & Platt, Incorporated (NYSE:LEG). The company’s EPS is now expected to be $0.39 per share for the quarter, down from their original estimate of $0.41. This news comes as a blow to investors who had hoped for better results.
Furthermore, Zacks Research has issued estimates for Leggett & Platt’s Q3 2023 earnings at $0.42 EPS and Q4 2023 earnings at $0.38 EPS. They also predict that the company will post Q1 2024 earnings at $0.38 EPS, followed by Q2 2024 earnings at $0.42 EPS and Q3 2024 earnings at $0.43 EPS. Additionally, Q4 2024 is expected to bring in $0.42 EPS while FY2024 earnings are predicted to reach $1.65 per share.
However, there may still be hope for investors as Zacks Research predicts that Leggett & Platt’s Q1 2025 earnings will be at $0.49 EPS and FY2025 earnings will rise to $1.90 EPS.
Several other brokerages have recently issued reports regarding LEG as well. On February 8th, Piper Sandler lowered their price target on shares of Leggett & Platt from $24 to $21 and advised an ‘underweight’ rating on the stock in a report.
Moreover, StockNews.com released a research report on April 28th stating that shares of Leggett & Platt were no longer rated ‘hold’ but had been changed to ‘sell’. Finally, The Goldman Sachs Group dropped their rating from ‘buy’ to ‘neutral’ on April 11th and lowered their price target from $39 to $34 a share.
Institutional investors and hedge funds have made changes to their holdings in regards to LEG. Apollon Wealth Management LLC recently acquired a new position in shares of Leggett & Platt during the 1st quarter worth about $355,000. Squarepoint Ops LLC raised its position in the company’s stock by 38.2% during the same period and now owns over 43,000 shares worth about $1,377,000. Additionally, First Trust Advisors LP increased their position by 83.3% via the purchase of over 398,000 shares amounting to approximately $27,975,000. Furthermore, Geode Capital Management LLC has also increased their position by approximately 2.9%, owning over 1.8 million shares valued at $59,663,000 as of May 17th.
Ultimately, despite recent downgrades in EPS predictions for Leggett & Platt (“LEG”), some analysts believe that there are still potential opportunities for investors to make gains within the company’s volatile market sector through shrewd investments and careful portfolio management strategies.
