Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Recline and Define Your Interest in These Companies: Ethan Allen Interiors Inc. (ETH), Leggett & Platt, Inc. (LEG)

Net sales at their Retail division increased 6.1 percent to $151.8 million. This includes comparable design center growth of 4.9 percent. Retail division written orders increased 1.2 percent over the 10.3 percent growth in the year ago second quarter. Comparable design center written orders increased 0.1 percent over the 6.7 percent growth the year before. Investors should note that it’s all growth here, though it may be modest in some cases – but no declines.

Excluding special items in both periods, net income for this quarter was $11.4 million, or $0.39 per diluted share, compared to $8.6 million, or $0.30 per diluted share in the year ago period. US GAAP net income for the quarter was $9.8 million, or $0.34 per diluted share, compared to the prior year of $8.1 million, or $0.28 per diluted share.

What’s significant for investors concerning the company? They expanded their global operations by entering the European and Montreal markets. They opened design centers in Brussels, Belgium and in Montreal, Quebec. Physical expansion (design centers), and net sales and net income growth is typically a sign of a quality company, in terms of finances and corporate management. Dividend-favoring investors should consider that the Company declared a regular quarterly cash dividend of $0.09 per share.

Going forward, investors may wish to investigate corporations that produce products we lounge, sleep, and do whatever in, everyday of our lives. They can offer a more relaxing investing environment compared to higher-risk equity offerings. If you play the more riskier ventures, a step back to recline in one of these stocks, or something such as Leggett & Platt, Inc. (NYSE:LEG) can provide the soothing rest one often needs after bolder forays on the market.

Leggett & Platt’s Residential Furnishings segment is the leading supplier of mattress springs, pocketed coils, bed frames, ornamental beds, bedding accessories, and more. Overall, full year 2012 sales increased 2 percent to $3.72 billion. Unit volume grew 3 percent and acquisitions (net of divestitures) contributed 1 percent to sales. EBIT increased, and EBIT margin improved from 6.5 percent in 2011 to 9.2 percent in 2012.

A key point for investors to consider: President and CEO Mr. David S. Haffner stated that the company “…generated more than enough cash from operations to readily fund dividends and capital expenditures, something we’ve accomplished for over 20 years.”

You may be getting very, very sleepy, like me, with a smile on your face, as you ponder possible returns from companies relating nice financial bedtime stories to potential investors. These aforementioned stocks are no guarantee against sleepless nights. However, you usually can get your 7 or 8 hours more consistently than with investments that are more adventurous.

The article Recline and Define Your Interest in These Companies originally appeared on Fool.com and is written by Michael Ugulini.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.