Leggett & Platt Inc.
) is set to report fourth-quarter 2013 results on Jan 24. Last
quarter, the company's earnings were below the expectations. Let
us see how things are developing for this announcement.
Factors Impacting Last Quarter
The company's earnings for third-quarter 2013 declined 4.4% to
43 cents per share due to lower sales and negative comps. Results
were also impacted by exclusion of the acquisition gain in the
quarter. Total sales of the company fell 2.1% year over year to
$957.7 million and it lagged the Zacks Consensus Estimate of
Prompted by its weak third-quarter performance, the company
revised its sales and earnings per share guidance for full-year
2013. It now expects sales to rise 1% to $3.75 billion, against
the previous forecast of $3.75-$3.85 billion. Adjusted EPS is
expected to come in the range of $1.50-$1.55, compared with the
prior projection of $1.50-$1.65.
Our proven model does not conclusively show that Leggett is
likely to beat earnings this quarter. This is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. This is not
the case here as you will see below.
ESP for Leggett is 0.00% since the Most Accurate Estimate stands
at 44 cents, which is in line with the Zacks Consensus
Zacks Rank #3 (Hold):
Leggett's Zacks Rank #3 (Hold) has little effect on the
predictive power of ESP because the Zacks Rank #3 when combined
with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements,
i.e., a positive Zacks Earnings ESP and a Zacks Rank #1, #2 or
) with an Earnings ESP of +7.09% and a Zacks Rank #1 (Strong
Seagate Technology public Ltd. Co.
) with an Earnings ESP of +1.44% and a Zacks Rank #1 (Strong
Pinnacle Financial Partners Inc.
) with an Earnings ESP of +2.33% and a Zacks Rank #1 (Strong
BAIDU INC (BIDU): Free Stock Analysis Report
LEGGETT & PLATT (LEG): Free Stock Analysis
PINNACLE FIN PT (PNFP): Free Stock Analysis
SEAGATE TECH (STX): Free Stock Analysis
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