Bedding manufacturer and retailer Sleep Number (NASDAQ:SNBR) will be reporting earnings tomorrow after market close. Here's what to look for.
Last quarter Sleep Number reported revenues of $429.5 million, down 13.7% year on year, beating analyst revenue expectations by 2.1%. It was a very strong quarter for the company, with a solid beat of analysts' revenue estimates.
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This quarter analysts are expecting Sleep Number's revenue to decline 9.9% year on year to $474.3 million, a further deceleration on the 0.1% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.22 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates four times over the last two years.
With Sleep Number being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for home furnishing and improvement retail stocks, but the whole sector have been hit hard on fears of higher interest rates, with stocks down on average 7.7% over the last month. Sleep Number is down 6.7% during the same time, and is heading into the earnings with with analyst price target of $12.5, compared to share price of $12.9.
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