Leggett & Platt ( NYSE: LEG ) stock slumped in Monday’s extended session after missing Q4 expectations and forecasting “meaningful” deterioration into 2023.
For the fourth quarter, $0.39 in adjusted EPS missed estimates by $0.09 while a 9.8% decline in revenue year over year to $1.2B missed expectations by $40M. Organic sales fell 12% in the quarter as volume fell by the same percentage due to “continued demand softness in residential end markets.” Currency impacts also offset price increases, according to the release.
“As we moved through the year, the dynamic macroeconomic and geopolitical environment pressured our markets and affected our results. We anticipate 2023 to be a challenging year driven by continued economic uncertainty,” CEO Mitch Dolloff commented. “We are focused on improving the things that we can control and continuing to mitigate the impacts of market challenges on our business…Our financial strength gives us confidence in our ability to successfully navigate challenging markets while investing in long-term opportunities.
For the full-year ahead, management anticipates sales between $4.8B and $5.2B against a $5.07B consensus. Meanwhile, an EPS guide between $1.50 and $1.90 came in below the $2.06 consensus. Management added that first quarter earnings are “expected to be down meaningfully vs 4Q 2022” due to seasonality, performance-based compensation, and other factors.
Shares of the Missouri-based mattress and home furnishings manufacturer fell 5.45% in after hours trading.
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Leggett & Platt stock slips on earnings miss, downbeat full-year forecast