Leggett & Platt (NYSE: LEG) is scheduled to announce its financial results tomorrow afternoon, and investors should be prepared with key insights.
In the previous quarter, the manufacturing company met analysts’ revenue expectations, posting earnings of $1.13 billion. However, this figure represents a 7.6% decline compared to the same period last year. The company’s performance has been lackluster, accompanied by disappointing earnings guidance for the upcoming fiscal year.
So, is Leggett & Platt a buy or sell ahead of the earnings report? For an in-depth analysis, click here for a complimentary report.
For the current quarter, analysts predict that Leggett & Platt’s revenue will decrease by 6.1% year on year to approximately $1.10 billion. This projection marks an improvement from the 9.2% drop recorded during the same quarter last year. Adjusted earnings are forecasted to reach $0.33 per share. Over the past month, most analysts covering the stock have reaffirmed their estimates, indicating confidence in the company’s stability leading up to the earnings announcement. It’s worth noting that Leggett & Platt has fallen short of Wall Street’s revenue expectations on five occasions in the past two years.
When examining competitors in the consumer discretionary sector, some have already disclosed their Q3 results, which may provide insight into Leggett & Platt’s upcoming performance. Mohawk Industries reported a 1.7% revenue decline year on year, meeting analysts’ forecasts, while Nike experienced a 10.4% revenue drop, also in line with consensus estimates. Following these results, Mohawk Industries’ stock fell by 13.7%, and Nike dropped 6.8%.
Growth stocks have been subject to increased volatility as investors grapple with the Federal Reserve’s monetary policy. While some consumer discretionary stocks have performed relatively well, the sector as a whole has seen an average decline of 2% over the past month. In contrast, Leggett & Platt has seen its stock price decrease by 10.6% during the same period and enters the earnings report with an average analyst price target of $12.67, slightly above its current trading price of $12.18.
In the broader context, it’s clear that generative AI is poised to significantly influence how large corporations operate. While major players like Nvidia and AMD are trading near historic highs, we are particularly interested in a lesser-known but profitable semiconductor company that stands to benefit from the AI surge.
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