Is Leggett (LEG) Poised to Beat Earnings Estimates? - Analyst Blog
20 Gennaio 2014 - 4:10PM
Zacks
Leggett & Platt
Inc. (LEG) 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 $993.0 million.
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.
Earnings
Whispers?
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
Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen.
This is not the case here as you will see below.
Zacks ESP: ESP for
Leggett is 0.00% since the Most Accurate Estimate stands at 44
cents, which is in line with the Zacks Consensus Estimate.
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 #3.
Baidu, Inc. (BIDU)
with an Earnings ESP of +7.09% and a Zacks Rank #1 (Strong Buy)
Seagate Technology public
Ltd. Co. (STX) with an Earnings ESP of +1.44% and a Zacks
Rank #1 (Strong Buy)
Pinnacle Financial Partners
Inc. (PNFP) with an Earnings ESP of +2.33% and a Zacks
Rank #1 (Strong Buy).
BAIDU INC (BIDU): Free Stock Analysis Report
LEGGETT & PLATT (LEG): Free Stock Analysis Report
PINNACLE FIN PT (PNFP): Free Stock Analysis Report
SEAGATE TECH (STX): Free Stock Analysis Report
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