NYSE$LEG

Leggett & Platt Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Leggett & Platt's Q3 2023 performance was impacted by weak demand, especially in the Bedding Products and Furniture, Flooring, & Textile Products segments, but was partially offset by continued demand strength in the Specialized Products segment. The company lowered its full-year guidance due to macroeconomic volatility and low consumer demand.

Leggett & Platt reported Q3 sales of $1.18 billion, a 9% decrease compared to Q3 2022. EPS was $.39, down from $.52 in the same period last year, while adjusted EPS was $.36, a decrease of $.16. The company lowered its full-year guidance due to continued volatility and weak demand.

  • Q3 sales decreased by 9% to $1.18 billion compared to the previous year.
  • EPS decreased to $.39, and adjusted EPS decreased to $.36.
  • Cash from operations increased to $144 million, a $78 million increase year-over-year.
  • Full-year guidance lowered to sales of $4.7–$4.75 billion and adjusted EPS of $1.35–$1.45.

Headline financials

Total Revenue

$1.18B

Previous: $1.31B-10.1%
EPS (adj)

$0.36

Previous: $0.52-30.8%
Capital Expenditures

-$90.4M

Previous: -$65.5M-38.0%
Free Cash Flow

-$37.6M

Previous: $5.9M-737.3%
Net Income

$52.8M

Previous: $71.4M-26.1%
Operating Income

$94.9M

Previous: $111M-14.8%
Gross Profit

$214M

Previous: $231M-7.0%
Cash & Equivalents

$274M

Previous: $226M+21.1%
Total Assets

$5.08B

Previous: $5.18B-1.9%
Stock-Based Comp

$5.2M

Previous: $4.3M+20.9%

Revenue & EPS history

Leggett & Platt · Revenue · Quarterly

$1.18B

Q3 2023-10.1%vs Q3 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

Full year 2023 sales and EPS guidance lowered. Guidance does not include impacts from the UAW strike beyond what we have experienced so far due to uncertainties around the duration and severity of the strike.

Tailwinds

  • Sales are expected to be $4.7–$4.75 billion, -8% to -9% versus 2022
  • Volume at the midpoint expected to be down mid-single digits
  • Acquisitions completed in 2022 expected to add ~2% to sales
  • EPS is expected to be $1.45–$1.55
  • Adjusted EPS is expected to be $1.35–$1.45

Headwinds

  • Volume is expected to be down high single digits in Bedding Products Segment
  • Volume is expected to be down low double digits in Furniture, Flooring & Textile Products Segment
  • Raw material-related price decreases and currency impact combined expected to reduce sales mid-single digits
  • Decrease in EPS is primarily from lower expected volume in our Furniture, Flooring & Textile Products and Bedding Products segments
  • EBIT margin should be 7.4%–7.7%; adjusted EBIT margin should be 7.0%–7.3%

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 Q3 2023

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro