Leggett & Platt, Incorporated LEG is scheduled to release fourth-quarter 2023 results on Feb 8, after market close.
In the last reported quarter, the company’s earnings and trade sales missed the Zacks Consensus Estimate by 7.7% and 5.5%, respectively, and decreased 30.8% and 9% from the year-ago quarter. Its earnings missed the consensus mark in three of the trailing four quarters and beat on one occasion, with an average surprise of 3.9%.
Estimate Revision and Projection
The Zacks Consensus Estimate for Leggett’s fourth-quarter 2023 earnings has remained stable at 26 cents per share over the past 60 days. The estimated figure indicates a 33.3% decline from the year-ago earnings of 39 cents per share.
The consensus mark for revenues is $1.1 billion, suggesting an 8.3% fall year over year.
Factors Affecting the Report
Leggett’s business is expected to have lackluster trade sales and earnings in fourth-quarter 2023, owing to soft demand across most of the markets served, primarily in the Bedding Products unit as well as Furniture, Flooring & Textile Products segment accompanied by ongoing inflationary market.
The company expects business in the fourth quarter to be slightly lower than the year-ago period, primarily due to the above-mentioned headwinds. The supply-related headwinds, raw material-related price decrease and currency impact are likely to have added to the woes.
Nonetheless, its long-term strategic plan, acquisitions, and shareholders’ moves are commendable and are likely to have aided the company’s fourth-quarter 2023.
Model Prediction
Our proven model does not conclusively predict an earnings beat for Leggett this time around. Leggett currently carries a Zacks Rank #2.
Stocks to Consider
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider.
Strategic Education, Inc. STRA has an Earnings ESP of +0.18% and a Zacks Rank #3. STRA’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, with the average surprise being 7.3%. Earnings for the to-be-reported quarter are expected to grow 75.6% year over year.
Choice Hotels International, Inc. CHH has an Earnings ESP of +1.48% and a Zacks Rank #3. CHH’s earnings topped the consensus mark in three of the last four quarters and missed the same in the other one, with the average surprise being 5.2%. Earnings for the to-be-reported quarter are expected to increase 7.1% year over year.
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