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Leggett Platt 2025 Q1 Earnings Strong Performance as Net Income Surges 476%
Generated by AI AgentAinvest Earnings Report Digest
Thursday, May 8, 2025 12:01 am ET2min read
Leggett & Platt (LEG) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The total revenue of increased by 35.9% to $7.44 billion in 2025 Q1, up from $5.47 billion in 2024 Q1. Leggett & Platt's EPS rose 450.0% to $0.44 in 2025 Q1 from $0.08 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $709 million in 2025 Q1, marking 476.4% growth from $123 million in 2024 Q1. Remarkably, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring strong operational resilience.
Leggett & Platt's Q1 results exceeded analysts' expectations, particularly in net income growth. The company maintained its full-year guidance for 2025, aligning its projections with prior estimates and demonstrating stability amid fluctuating market conditions.
Revenue
The total revenue of Leggett & Platt increased by 35.9% to $7.44 billion in 2025 Q1, up from $5.47 billion in 2024 Q1.
Earnings/Net Income
Leggett & Platt's EPS rose 450.0% to $0.44 in 2025 Q1 from $0.08 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $709 million in 2025 Q1, marking 476.4% growth from $123 million in 2024 Q1. The EPS growth reflects a strong performance.
Price Action
The stock price of Leggett & Platt has edged down 1.51% during the latest trading day, has dropped 5.30% during the most recent full trading week, and has surged 26.70% month-to-date.
Post-Earnings Price Action Review
The strategy of buying Leggett & Platt shares following a revenue increase quarter-over-quarter and holding for 30 days resulted in an 18.42% return over the past five years, significantly underperforming the benchmark's 84.08% return. The strategy's low Sharpe ratio of 0.23 indicates poor risk-adjusted returns, and it experienced a maximum drawdown of -20.16%, underscoring the need for effective risk management. These figures highlight the high-risk nature of this approach and suggest that investors need to consider alternative strategies or incorporate robust risk mitigation techniques when dealing with Leggett & Platt shares. Despite the modest returns, the historical data reveals the volatility and potential pitfalls associated with this strategy, emphasizing the importance of careful analysis and strategic planning.
CEO Commentary
Karl Glassman, President and CEO, expressed satisfaction with the first quarter's financial results, noting improved earnings driven by effective execution of the restructuring plan and enhanced operational efficiency. He highlighted the company's resilience amid challenging market conditions, particularly in the bedding sector, where demand remains weak. Glassman emphasized the importance of disciplined cost management and the strategic focus on strengthening the balance sheet and improving profitability. He acknowledged the complex tariff environment and its potential impacts on inflation and consumer confidence but maintained a cautious optimism about the company's ability to navigate these challenges and capitalize on opportunities for growth in domestically produced products.
Guidance
Leggett & Platt maintains its guidance for 2025, projecting revenue between $4.0 billion and $4.3 billion, reflecting a decline of 2% to 9% compared to 2024. The company expects adjusted EPS to range from $1.00 to $1.20, with overall sales volume anticipated to decrease in the low to high-single digits. Additionally, operating cash flow is projected between $275 million and $325 million, with capital expenditures estimated at $100 million.
Additional News
Leggett & Platt recently announced its quarterly dividend for the first quarter of 2025, declaring a dividend of $0.05 per share payable on April 15, 2025, with a record date of March 14, 2025. This marks a significant reduction from previous dividends, reflecting the company's strategic focus on debt reduction. Additionally, the company signed an agreement to sell its Aerospace Products Group for $285 million, a move aimed at optimizing its portfolio. Furthermore, Leggett & Platt's Board of Directors declared a second-quarter dividend of $0.05 per share, payable on July 15, 2025, after the retirement of Manuel Fernandez and Mark Blinn from the Board, reducing the number of directors to eight.
Leggett & Platt's Q1 results exceeded analysts' expectations, particularly in net income growth. The company maintained its full-year guidance for 2025, aligning its projections with prior estimates and demonstrating stability amid fluctuating market conditions.
Revenue
The total revenue of Leggett & Platt increased by 35.9% to $7.44 billion in 2025 Q1, up from $5.47 billion in 2024 Q1.
Earnings/Net Income
Leggett & Platt's EPS rose 450.0% to $0.44 in 2025 Q1 from $0.08 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $709 million in 2025 Q1, marking 476.4% growth from $123 million in 2024 Q1. The EPS growth reflects a strong performance.
Price Action
The stock price of Leggett & Platt has edged down 1.51% during the latest trading day, has dropped 5.30% during the most recent full trading week, and has surged 26.70% month-to-date.
Post-Earnings Price Action Review
The strategy of buying Leggett & Platt shares following a revenue increase quarter-over-quarter and holding for 30 days resulted in an 18.42% return over the past five years, significantly underperforming the benchmark's 84.08% return. The strategy's low Sharpe ratio of 0.23 indicates poor risk-adjusted returns, and it experienced a maximum drawdown of -20.16%, underscoring the need for effective risk management. These figures highlight the high-risk nature of this approach and suggest that investors need to consider alternative strategies or incorporate robust risk mitigation techniques when dealing with Leggett & Platt shares. Despite the modest returns, the historical data reveals the volatility and potential pitfalls associated with this strategy, emphasizing the importance of careful analysis and strategic planning.
CEO Commentary
Karl Glassman, President and CEO, expressed satisfaction with the first quarter's financial results, noting improved earnings driven by effective execution of the restructuring plan and enhanced operational efficiency. He highlighted the company's resilience amid challenging market conditions, particularly in the bedding sector, where demand remains weak. Glassman emphasized the importance of disciplined cost management and the strategic focus on strengthening the balance sheet and improving profitability. He acknowledged the complex tariff environment and its potential impacts on inflation and consumer confidence but maintained a cautious optimism about the company's ability to navigate these challenges and capitalize on opportunities for growth in domestically produced products.
Guidance
Leggett & Platt maintains its guidance for 2025, projecting revenue between $4.0 billion and $4.3 billion, reflecting a decline of 2% to 9% compared to 2024. The company expects adjusted EPS to range from $1.00 to $1.20, with overall sales volume anticipated to decrease in the low to high-single digits. Additionally, operating cash flow is projected between $275 million and $325 million, with capital expenditures estimated at $100 million.
Additional News
Leggett & Platt recently announced its quarterly dividend for the first quarter of 2025, declaring a dividend of $0.05 per share payable on April 15, 2025, with a record date of March 14, 2025. This marks a significant reduction from previous dividends, reflecting the company's strategic focus on debt reduction. Additionally, the company signed an agreement to sell its Aerospace Products Group for $285 million, a move aimed at optimizing its portfolio. Furthermore, Leggett & Platt's Board of Directors declared a second-quarter dividend of $0.05 per share, payable on July 15, 2025, after the retirement of Manuel Fernandez and Mark Blinn from the Board, reducing the number of directors to eight.
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