Why Leggett & Platt (LEG) Shares Are Diving Today - Leggett & Platt (NYSE:LEG)

Leggett & Platt Inc LEG lowered its FY22 sales guidance to $5.1 billion - $5.2 billion from the previously stated outlook of $5.2 billion – $5.4 billion, against an estimate of $5.32 billion.
The decrease is primarily due to lower volume than previously expected, reduced production, slower than anticipated cost recovery in Automotive, and operational inefficiencies in Specialty Foam.
It also slashed the FY22 EPS outlook to $2.30–$2.45 from $2.65–$2.80 versus the consensus of $2.70.
Related: Leggett & Platt Cuts FY22 Guidance Citing Macroeconomic Uncertainties
Cash from operations is expected to be $400 million - $450 million versus prior guidance of $550 million - $600 million.
Based on the new outlook, EBIT margin range should be 9.5% to 10.0% (previously 10.5%–10.7%).
In late August, Leggett acquired a manufacturer of hydraulic cylinders for heavy construction machinery. It also acquired a converter of construction fabrics for the furniture and bedding industries located in Shannon, Mississippi.
On October 3, Leggett & Platt acquired a distributor of geo components located in Ottawa, Canada.
Price Action: LEG shares are trading lower by 7.15% at $32.20 in premarket on the last check Tuesday.

Leggett & Platt Shares Plunge After FY22 Guidance Cut