S&P 500 (NYSE:SPY) component Leggett & Platt Inc. (NYSE:LEG) reported its results for the second quarter. Leggett & Platt, Incorporated manufactures a range of engineered components and products, including residential furnishings, commercial fixtures and components and industrial materials.
Leggett & Platt Earnings Cheat Sheet for the Second Quarter
Results: Net income for the home furnishings and fixtures company rose to $54.7 million (37 cents per share) vs. $52.7 million (34 cents per share) in the same quarter a year earlier. This marks a rise of 3.8% from the year earlier quarter.
Revenue: Rose 8.1% to $945.2 million from the year earlier quarter.
Actual vs. Wall St. Expectations: LEG fell in line with the mean analyst estimate of 37 cents per share. Analysts were expecting revenue of $926.7 million.
Quoting Management: President and CEO David S. Haffner commented, “Operationally, it was a reasonably good quarter. Gross profit improved by $2 million versus second quarter last year, despite lack of demand growth. EBIT, however, was lower than in 2010 due to unusually high SG&A costs, which included items that will not recur. We continue to strive for annual SG&A costs at or below 10% of sales.”
Gross margin shrank 1.3 percentage points to 19.2%. The contraction appeared to be driven by increased costs, which rose 9.9% from the year earlier quarter while revenue rose 8.1%.
Revenue has risen the past four quarters. Revenue increased 9.7% to $895.8 million in the first quarter. The figure rose 4.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 7% in the third quarter of the last fiscal year from the year-ago quarter.
Last quarter’s profit increase breaks a streak of three consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 0.2% from the year earlier, while the figure dropped 10.8% in the fourth quarter of the last fiscal year and 12.7% in the third quarter of the last fiscal year.
The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 30 cents versus a mean estimate of net income of 20 cents per share.
Competitors to Watch: Select Comfort Corp. (NASDAQ:SCSS), Tempur-Pedic Intl. Inc. (NYSE:TPX), Sealy Corporation (NYSE:ZZ), La-Z-Boy Incorporated (NYSE:LZB), Flexsteel Industries, Inc. (NASDAQ:FLXS), Hooker Furniture Corp. (NASDAQ:HOFT), Chromcraft Revington, Inc. (AMEX:CRC).
(Source: Xignite Financials)