Bedding manufacturer Somnigroup (NYSE:SGI) will be announcing earnings results this Tuesday before market open. Here’s what investors should know.
Somnigroup beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $2.12 billion, up 63.3% year on year. It was a strong quarter for the company, with full-year EPS guidance topping analysts’ expectations and a decent beat of analysts’ adjusted operating income estimates.
Is Somnigroup a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Somnigroup’s revenue to grow 59.8% year on year to $1.93 billion, improving from the 3.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Somnigroup has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Somnigroup’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mohawk Industries delivered year-on-year revenue growth of 2.4%, beating analysts’ expectations by 0.9%, and Leggett & Platt reported a revenue decline of 11.2%, in line with consensus estimates. Mohawk Industries’s stock price was unchanged after the resultswhile Leggett & Platt was down 7.7%.
Read our full analysis of Mohawk Industries’s results here and Leggett & Platt’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.7% on average over the last month. Somnigroup is up 3.7% during the same time and is heading into earnings with an average analyst price target of $103.25 (compared to the current share price of $96.01).
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