What Happened:Shares of manufacturing company Leggett & Platt (NYSE:LEG) fell 32.4% in the morning session after the company reported first quarter results with its revenue and EPS falling below Wall Street's estimates. The company stated its underperformance stemmed from weak demand in its residential end markets. Additionally, operating cash flows were negative $6 million, down from $103 million in Q1 2023. This was primarily driven by lower accounts payable and earnings.
Looking ahead, the company reconfirmed its revenue guidance for the full year, but its earnings forecast missed. Overall, this was a bad quarter for Leggett & Platt.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Leggett & Platt? Find out by reading the original article on StockStory, it's free.
What is the market telling us:Leggett & Platt's shares are not very volatile than the market average and over the last year have had only 4 moves greater than 5%. Moves this big are very rare for Leggett & Platt and that is indicating to us that this news had a significant impact on the market's perception of the business.
Leggett & Platt is down 51.4% since the beginning of the year, and at $12.84 per share it is trading 61.1% below its 52-week high of $32.97 from May 2023. Investors who bought $1,000 worth of Leggett & Platt's shares 5 years ago would now be looking at an investment worth $324.94.
