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Leggett & Platt stock hits 52-week low at $9.41 amid market challenges

Published 12/26/2024, 09:40 AM
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In a turbulent market environment, Leggett & Platt, Incorporated's stock has touched a 52-week low, dipping to $9.41. This significant downturn reflects a broader trend for the diversified manufacturer, which has seen its shares plummet by 64.1% over the past year. Investors are closely monitoring the company's performance as it navigates through the headwinds that have led to this notable decline in its stock value. The 52-week low serves as a critical indicator of the current market sentiment towards the company and poses questions about its future trajectory in an uncertain economic landscape. Despite current challenges, InvestingPro data shows net income is expected to grow this year, with analysts forecasting profitability. For deeper insights into Leggett & Platt's valuation and prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, diversified manufacturer of engineered products, Leggett & Platt Incorporated, reported a decrease in sales and earnings for the third quarter of 2024 due to sluggish demand across various market sectors. Sales fell by 6% to $1.1 billion, while adjusted earnings per share dropped by 11% to $0.32. The company also revised its full-year sales guidance to $4.3 billion to $4.4 billion, reflecting a 7% to 9% decline from 2023.

Despite these challenges, Leggett & Platt's restructuring plan is progressing as expected, with anticipated annual cost savings between $50 million and $60 million by late 2025. The company has successfully reduced its total debt by $124 million to $1.9 billion. Cash from operations for 2024 is projected to be around $300 million.

The company's outlook includes an adjusted EPS forecast revised to $1 to $1.10, down from the previous $1.10 to $1.25. Weak demand is expected, particularly in the Specialized Products and Furniture, Flooring & Textile Products segments. However, the company's steel rod business experienced a sales surge and there is cautious optimism for an increase in automotive volumes before the Chinese New Year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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