Leggett & Platt Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Leggett & Platt, Inc. (NYSE:LEG) will unveil its latest earnings tomorrow, Monday, February 4, 2013. 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 analyst estimate is for net income of 29 cents per share, a rise of 31.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 28 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 29 cents during the last month. Analysts are projecting profit to rise by 33% compared to last year’s $1.49.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 7 cents, reporting profit of 45 cents per share against a mean estimate of net income of 38 cents. In the second quarter, the company exceeded forecasts by 3 cents with profit of 39 cents versus a mean estimate of net income of 36 cents.

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A Look Back: In the third quarter, profit rose 46.5% to $65.8 million (45 cents a share) from $44.9 million (31 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.4% to $982.2 million from $940.9 million.

Here’s how Leggett & Platt traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Stock Price Performance: From December 28, 2012 to January 29, 2013, the stock price rose $3.28 (12.4%), from $26.43 to $29.71. The stock price saw one of its best stretches over the last year between March 23, 2012 and April 3, 2012, when shares rose for eight straight days, increasing 3.5% (+79 cents) over that span. It saw one of its worst periods between November 6, 2012 and November 14, 2012 when shares fell for seven straight days, dropping 4.7% (-$1.28) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.73 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 2.3% over the past four quarters.

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 0.7% in the second quarter after increasing in the third quarter.

Wall St. Revenue Expectations: Analysts predict a rise of 2.2% in revenue from the year-earlier quarter to $872.7 million.

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.

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