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NEW YORK - Leggett & Platt (NYSE:LEG) shares soared 14.7% in after-hours trading Monday after the diversified manufacturer reported better-than-expected first quarter earnings and reaffirmed its full-year guidance.
The Carthage, Missouri-based company posted adjusted earnings per share of $0.24 for Q1, beating analyst estimates of $0.22. Revenue came in at $1.02 billion, slightly below the consensus forecast of $1.07 billion but down only 7% YoY despite continued weak demand in residential end markets.
"We are pleased to report better than anticipated first quarter earnings," said President and CEO Karl Glassman. "Our earnings improvement is a testament to the excellent execution of our restructuring plan and operational efficiency improvement initiatives, as well as disciplined cost management."
While sales declined 7% YoY, adjusted EBIT margin expanded 70 basis points to 6.5%, driven by restructuring benefits and cost controls. The company maintained its full-year 2025 guidance, projecting sales of $4.0-$4.3 billion and adjusted EPS of $1.00-$1.20.
Leggett & Platt said it expects to realize $35-$40 million in incremental EBIT benefits from its restructuring initiatives in 2025. The company also anticipates receiving $15-$40 million in cash proceeds from real estate sales associated with the restructuring plan this year.
Despite macroeconomic uncertainties, management expressed confidence in the company’s ability to execute its strategic priorities and deliver long-term shareholder value.
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