Shareholders will be ecstatic, with their stake up 32% over the past week following Leggett & Platt, Incorporated's (NYSE:LEG) latest quarterly results. The result was positive overall - although revenues of US$1.0b were in line with what the analysts predicted, Leggett & Platt surprised by delivering a statutory profit of US$0.22 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 3 warning signs about Leggett & Platt. View them for free.

After the latest results, the consensus from Leggett & Platt's four analysts is for revenues of US$4.15b in 2025, which would reflect a measurable 3.7% decline in revenue compared to the last year of performance. Leggett & Platt is also expected to turn profitable, with statutory earnings of US$1.05 per share. In the lead-up to this report, the analysts had been modelling revenues of US$4.17b and earnings per share (EPS) of US$0.99 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Leggett & Platt

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.1% to US$10.00. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Leggett & Platt, with the most bullish analyst valuing it at US$11.00 and the most bearish at US$9.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.9% by the end of 2025. This indicates a significant reduction from annual growth of 0.03% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Leggett & Platt is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Leggett & Platt following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Leggett & Platt's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Leggett & Platt analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Leggett & Platt (1 is a bit unpleasant!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.