Leggett & Platt Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Leggett & Platt, Inc. (NYSE:LEG) will unveil its latest earnings on Thursday, July 26, 2012. Leggett & Platt manufactures a range of engineered components and products, including residential furnishings, commercial fixtures and components, and industrial materials.

Leggett & Platt, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 36 cents per share, a rise of 2.9% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting profit of $1.31 per share, a rise of 17% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the first quarter, it reported net income of 30 cents per share against a mean estimate of 32 cents. Two quarters ago, it beat expectations by one cent with profit of 22 cents.

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Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price fell $2 (-8.5%), from $23.60 to $21.60. The stock price saw one of its best stretches over the last year between December 14, 2011 and December 27, 2011, when shares rose for nine straight days, increasing 10.9% (+$2.34) over that span. It saw one of its worst periods between May 1, 2012 and May 9, 2012 when shares fell for seven straight days, dropping 5.9% (-$1.29) over that span.

Wall St. Revenue Expectations: On average, analysts predict $978.9 million in revenue this quarter, a rise of 3.6% from the year-ago quarter. Analysts are forecasting total revenue of $3.78 billion for the year, a rise of 3.8% from last year’s revenue of $3.64 billion.

A Look Back: In the first quarter, profit fell 2.2% to $44 million (30 cents a share) from $45 million (30 cents a share) the year earlier, missing analyst expectations. Revenue rose 5.7% to $946.8 million from $895.8 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 8.1% in the second quarter of the last fiscal year, 8.6% in the third quarter of the last fiscal year and 6.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

After experiencing income drops the past three quarters, the company is hoping to use this earnings announcement to rebound. Net income fell 5.3% in the third quarter of the last fiscal year, by 72.3% in the fourth quarter of the last fiscal year and again in the first quarter.

Analyst Ratings: With three analysts rating the stock as a buy, none rating it as a sell and three rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.16 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 2.09 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 10.3% to $1.35 billion while liabilities rose by 6.8% to $626.1 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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