Leggett & Platt Crushes Earnings Estimates (LEG)

Leggett & Platt, Incorporated LEG reports Q2 EPS $0.34 vs consensus of $0.30. Leggett & Platt, Incorporated reports Q2 revenue $874 million vs consensus of $833.06 million. Revenues increased 15.4% year over year. The company also issued in-line guidance for FY 2010 of $1.10 to $1.30 on revenues of $3.2 to $3.4 billion. This compares to the Street consensus of $1.23 per shares on revenue of $3.36 billion. "Near term, growth should significantly exceed our 4-5% long-term goal as the economy recovers. With our excess production capacity, sales can rebound approximately 25%-33% (to $4 billion or more) before we anticipate the need for significant capital investment. We expect an incremental margin of 25-35% as unit volumes increase, at least until sales exceed $4 billion; as a result, EBIT margin should improve notably as sales grow. Shares of LEG are flat in the after-hours.