Leggett & Platt Incorporated

Tenable Holdings will replace Leggett & Platt in the S&P SmallCap 600, effective prior to the opening of trading on Monday, August 31. The index change follows the acquisition of Leggett & Platt by Somnigroup International, an S&P MidCap 400 constituent, in a deal expected to close soon. Tenable shares rose about 7% in extended trading on Wednesday.

Peloton reported first-quarter revenues of $630.9 million, up 1.1% year on year and exceeding analysts' expectations by 2.1%. The company also delivered an impressive beat on adjusted operating income, though full-year EBITDA guidance missed estimates. Among the 141 consumer discretionary stocks tracked, overall revenues beat consensus by 2% while next-quarter guidance came in 4.1% below. The sector's share prices have risen 5.9% on average since earnings, with Peloton's stock up 10.4% to $5.74. Howard Hughes Holdings was the best performer with a 20.4% revenue beat, while Leggett & Platt was the weakest after missing revenue estimates by 3.3%.

Apple reported first-quarter revenue of $111.2 billion, up 16.6% year on year and exceeding analyst expectations by 1.7%. The company also delivered a strong beat on earnings per share. Among the 141 consumer discretionary stocks tracked, overall revenues beat consensus estimates by 2%, though next-quarter guidance came in 4.1% below. The best performer was Howard Hughes Holdings, which posted revenue of $235.9 million, beating estimates by 20.4%, while Leggett & Platt was the weakest, with revenue down 10.2% to $918.2 million and missing expectations. Nike reported revenue of $10.97 billion, down 1.1% but still ahead of estimates, and DraftKings posted revenue of $1.65 billion, up 16.8% and in line with expectations.

Halper Sadeh LLC, an investor rights law firm, is investigating Open Lending Corporation, Equity Residential, Leggett & Platt, and Modiv Industrial for potential violations of federal securities laws or breaches of fiduciary duties in connection with their proposed transactions. The investigation concerns Open Lending's sale to ANV Group Holdings for $3.15 per share, Equity Residential's merger with AvalonBay Communities where Equity Residential shareholders would own about 48.8% of the combined company, Leggett & Platt's sale to Somnigroup International for 0.1455 shares of Somnigroup common stock per Leggett & Platt share resulting in Leggett & Platt shareholders owning approximately 9% of the combined company, and Modiv Industrial's sale to Global Net Lease where Modiv shareholders are expected to own roughly 11% of the combined company. The firm notes that insiders may receive substantial financial benefits not available to ordinary shareholders and that the proposed deals may contain terms limiting superior competing offers. Halper Sadeh LLC may seek increased consideration, additional disclosures, or other relief on behalf of shareholders.

The consumer discretionary sector saw mixed Q1 results, with revenues beating analyst estimates by 2% on average but next-quarter guidance coming in 4.1% below expectations. Sysco reported revenues of $20.52 billion, up 4.7% year-on-year and in line with estimates, while Smith & Wesson posted the best performance with revenues of $178.4 million, a 26.7% increase that beat expectations by 14.9%. Leggett & Platt was the weakest, with revenues of $918.2 million, down 10.2% and missing estimates by 3.3%. Wyndham and Figs also reported, with Figs seeing a 28% revenue jump to $159.9 million but its stock falling 26.5% since the release.

Performance Food Group reported first-quarter revenues of $16.29 billion, up 6.4% year on year and exceeding analyst expectations by 0.8%. The food distributor, which operates 155 distribution centers and serves over 300,000 locations across North America, delivered full-year revenue guidance in line with estimates but missed adjusted operating income projections. Its stock has risen 23.4% since the earnings release. Among the 141 consumer discretionary stocks tracked, the group overall beat revenue consensus by 2% while next-quarter guidance came in 4.1% below estimates, and shares have averaged a 3.8% gain since reporting. Smith & Wesson posted the strongest results with a 26.7% revenue jump and a 14.9% beat, while Leggett & Platt was the weakest, with revenue down 10.2% and missing estimates by 3.3%.