What Should We Expect From Leggett & Platt, Incorporated's (NYSE:LEG) Earnings In The Next 12 Months?
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In December 2018, Leggett & Platt, Incorporated (NYSE:LEG) released its earnings update. Generally, it seems that analyst forecasts are fairly optimistic, as a 11% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 9.3%. Currently with trailing-twelve-month earnings of US$306m, we can expect this to reach US$341m by 2020. Below is a brief commentary on the longer term outlook the market has for Leggett & Platt. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for Leggett & Platt
Exciting times ahead?
Over the next three years, it seems the consensus view of the 7 analysts covering LEG is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, LEG's earnings should reach US$423m, from current levels of US$306m, resulting in an annual growth rate of 9.2%. EPS reaches $3.1 in the final year of forecast compared to the current $2.28 EPS today. In 2022, LEG's profit margin will have expanded from 7.2% to 7.7%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Leggett & Platt, I've compiled three pertinent factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Leggett & Platt worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Leggett & Platt is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Leggett & Platt? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
