Bedding and comfort retailer Purple (NASDAQ: PRPL) will be announcing earnings results this Monday after market close. Here’s what to look for.
Purple missed analysts’ revenue expectations last quarter, reporting revenues of $95.73 million, down 8.1% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.
Is Purple a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Purple’s revenue to decline 2.5% year on year, improving from the 12.6% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Purple’s peers in the consumer discretionary - home furnishings segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mohawk Industries delivered year-on-year revenue growth of 6.8%, beating analysts’ expectations by 7.2%, and Leggett & Platt reported a revenue decline of 5.5%, topping estimates by 1.7%. Mohawk Industries traded up 3% following the results while Leggett & Platt was down 6.1%.
Read our full analysis of Mohawk Industries’s results here and Leggett & Platt’s results here.
Investors in the consumer discretionary - home furnishings segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Purple is up 16.1% during the same time and is heading into earnings with an average analyst price target of $25 (compared to the current share price of $9.54).
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