Unpacking Q3 Earnings: Leggett & Platt (NYSE:LEG) In The Context Of Other Home Furnishings Stocks

Looking back on home furnishings stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Leggett & Platt (NYSE:LEG) and its peers.

A healthy housing market is good for furniture demand as more consumers are buying, renting, moving, and renovating. On the other hand, periods of economic weakness or high interest rates discourage home sales and can squelch demand. In addition, home furnishing companies must contend with shifting consumer preferences such as the growing propensity to buy goods online, including big things like mattresses and sofas that were once thought to be immune from e-commerce competition.

The 6 home furnishings stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 33,151% above.

In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.

Leggett & Platt (NYSE:LEG)

Leggett & Platt reported revenues of $1.10 billion, down 6.3% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations.

President and CEO Karl Glassman commented, "We continued to make solid progress on our restructuring and operating efficiency improvement initiatives, although demand headwinds were more challenging than anticipated in the third quarter. Despite weaker than expected results, we paid down $124 million of debt and adjusted EBIT margin improved by 60 basis points sequentially this quarter.

The stock is down 11.1% since reporting and currently trades at $10.81.

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Best Q3: La-Z-Boy (NYSE:LZB)

La-Z-Boy reported revenues of $521 million, up 1.9% year on year, outperforming analysts’ expectations by 2.8%. The business had a strong quarter with an impressive beat of analysts’ adjusted operating income estimates.

La-Z-Boy pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 13.6% since reporting. It currently trades at $48.02.

Weakest Q3: Lovesac (NASDAQ:LOVE)

Lovesac reported revenues of $149.9 million, down 2.7% year on year, falling short of analysts’ expectations by 3.5%. It was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

Lovesac delivered the weakest full-year guidance update in the group. As expected, the stock is down 28.2% since the results and currently trades at $27.

Tempur Sealy (NYSE:TPX)

Tempur Sealy reported revenues of $1.3 billion, up 1.8% year on year. This print topped analysts’ expectations by 0.9%. More broadly, it was a mixed quarter as it also recorded a decent beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations.

The stock is up 29.1% since reporting and currently trades at $64.37.

Purple (NASDAQ:PRPL)

Purple reported revenues of $118.6 million, down 15.3% year on year. This number came in 6% below analysts' expectations. Zooming out, it was a mixed quarter as it also logged full-year EBITDA guidance exceeding analysts’ expectations.

Purple achieved the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates among its peers. The stock is up 22.3% since reporting and currently trades at $1.15.

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This content was originally published on Stock Story