NYSE$LEG

Leggett & Platt Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Leggett & Platt's Q2 2023 earnings declined due to weak demand and destocking, but the company is executing cost reduction strategies and remains optimistic about long-term growth.

Leggett & Platt reported a decrease in sales and earnings for the second quarter of 2023. Weak demand and customer destocking impacted performance. The company is focused on cost reduction and operational efficiency to mitigate these challenges.

  • Sales decreased 8% to $1.2 billion, reflecting volume decline partially offset by price.
  • EPS was $0.44, and adjusted EPS was $0.48.
  • The company is executing cost reduction strategies targeting $70-$80 million in savings this year.
  • Leggett & Platt is revising its full-year sales and earnings guidance to reflect current market conditions.

Headline financials

Total Revenue

$1.22B

Previous: $1.35B-9.5%
EPS (adj)

$0.38

Previous: $0.70-45.7%
Capital Expenditures

-$68.2M

Previous: -$40.8M-67.2%
Free Cash Flow

-$14M

Previous: $54.4M-125.7%
Net Income

$54.2M

Previous: $95.2M-43.1%
Operating Income

$86.2M

Previous: $145M-40.6%
Gross Profit

$221M

Previous: $268M-17.6%
Cash & Equivalents

$272M

Previous: $270M+0.9%
Total Assets

$5.14B

Previous: $5.23B-1.6%
Stock-Based Comp

$6.8M

Previous: $7.8M-12.8%

Revenue & EPS history

Leggett & Platt · Revenue · Quarterly

$1.22B

Q2 2023-9.5%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Leggett & Platt · $1.18B total across 3 segments · Q3 2023

  • Bedding Products
    $483M-17.0%
  • Furniture, Flooring & Textile Products
    $373M
  • Specialized Products
    $319M

Forward guidance

Leggett & Platt has revised its full-year 2023 guidance to reflect current market conditions, including lower sales and earnings expectations.

Tailwinds

  • Focus on executing cost reduction strategies to improve profitability.
  • Anticipate benefits from long-term growth trends in key markets.
  • Committed to maintaining a strong balance sheet and returning cash to shareholders.
  • Expect modest recovery in demand during the second half of the year.
  • Continue to invest in innovation and new product development.

Headwinds

  • Reduced full-year sales guidance to $4.8-$5.0 billion.
  • Decreased full-year EPS guidance to $2.20-$2.40.
  • Weak demand and customer destocking expected to persist in the near term.
  • Macroeconomic uncertainty could further impact performance.
  • Raw material and labor cost inflation may pressure margins.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.1%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-1.5%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+31.6%

Q1 2025

Best reaction

-27.7%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.3%-8.7%-2.8%
Q4 2025-7.7%-5.0%-17.9%
Q3 2025+15.1%+1.7%+10.5%
Q1 2025+31.6%+31.1%+25.2%
Q4 2024+4.5%-0.7%-18.9%
Q3 2024+4.0%-1.2%+3.4%
Q2 2024-1.3%-3.2%-4.0%
Q1 2024-27.7%-23.9%-39.9%
Q4 2023-11.6%-14.0%-11.6%
Q3 2023+1.1%+2.8%-0.8%
Q2 2023-0.7%+2.7%-7.0%
Q1 2023+0.0%+1.7%-5.7%
Q4 2022-6.5%-9.0%-10.8%
Q3 2022-0.4%-0.1%+6.6%
Q2 2022+0.1%+2.2%-3.6%
Q1 2022+7.6%+4.5%+8.4%
Q4 2021+1.4%+0.9%-2.4%
Q3 2021-7.1%-5.8%-13.5%
Q2 2021+1.6%+0.3%+0.5%
Q1 2021+8.5%+15.8%+10.2%
Q4 2020+0.0%-1.6%+14.6%
Q3 2020-0.6%-2.5%+2.3%
Q2 2020-5.3%-2.3%+8.7%
Q1 2020-10.1%-11.7%+4.1%
Q4 2019-0.1%-5.3%-14.9%
Q3 2019+14.0%+13.3%+16.3%
Q2 2019+2.5%-2.0%-6.8%
Q1 2019-6.3%-4.0%-12.3%
Q4 2018+9.5%+6.1%+10.0%
Q3 2018-7.6%-3.5%+1.1%
Q2 2018-1.3%-2.5%+1.1%
Q1 2018-1.9%-3.5%-0.5%
Q4 2017+1.2%-1.7%+0.0%
Q3 2017+3.2%-1.3%-2.9%
Q2 2017-4.3%-7.2%-12.6%
Q1 2017-2.8%-1.4%-3.6%
Q4 2016+0.7%+2.8%+5.3%
Q3 2016+1.9%+1.6%+10.5%
Q2 2016-1.8%-4.4%-3.4%
Q1 2016+1.4%
Q4 2015-1.7%
Q3 2015+0.1%
Q2 2015-4.0%
Q1 2015+6.2%
Q4 2014-4.2%
Q3 2014+3.9%
Q2 2014+2.0%
Q1 2014-4.3%
Q4 2013-1.7%
Q3 2013+0.6%
Q2 2013-2.6%
Q1 2013-2.4%
Q4 2012+0.1%
Q3 2012+4.4%
Q2 2012+3.6%
Q1 2012-6.8%
Q4 2008+1.8%
Q4 2011+1.8%
Q3 2011+1.2%
Q2 2011-6.2%
Q1 2010+0.2%
Q1 2011-1.7%
Q4 2010+2.5%
Q3 2010+1.1%
Q3 2009+1.1%
Q2 2009-0.8%
Q2 2010-0.8%
Q4 2009-0.8%

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