Bedding manufacturer and retailer Sleep Number (NASDAQ: SNBR) will be announcing earnings results this Wednesday before market open. Here’s what to look for.
Sleep Number missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $393.3 million, down 16.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
Is Sleep Number a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sleep Number’s revenue to decline 12.5% year on year to $357.4 million, a further deceleration from the 11% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
With Sleep Number being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for home furnishing and improvement retail stocks. However, there has been positive investor sentiment in the segment, with share prices up 9.5% on average over the last month. Sleep Number is up 34% during the same time and is heading into earnings with an average analyst price target of $6.50 (compared to the current share price of $9.05).
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