Yahoo Finance Factors Likely to Shape Sleep Number's (SNBR) Q2 Earnings
Sleep Number Corporation SNBR is scheduled to report second-quarter 2020 results on Jul 15, after the closing bell.
In the last reported quarter, the company’s earnings and sales beat the Zacks Consensus Estimate by 97.1% and 11.5%, respectively. On a year-over-year basis, earnings and revenues grew a whopping 70% and 11%, respectively.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for loss per share has narrowed down to 81 cents from 87 cents over the past 60 days. The estimated figure indicates a decline of 910% from the year-ago quarter. The consensus mark for revenues is pegged at $230.6 million, suggesting a 35.2% increase from the year-ago reported figure of $356 million.
Sleep Number Corporation Price and EPS Surprise
Sleep Number Corporation price-eps-surprise | Sleep Number Corporation Quote
Key Factors to Note
Temporary closure of most of the retail stores since mid-March owing to the COVID-19 pandemic, and government restrictions are expected to have impacted the company’s second-quarter revenues as well as earnings.
The company — a market leader in sleep innovation — witnessed lower demand in the quarter to be reported (mainly in the earlier part of the second quarter) owing to coronavirus-led shutdowns. During first-quarter earnings call, it projected second-quarter sales to be about half of the prior-year figure. Notably, the company generates seasonally low sales and cash in the second quarter.
Nonetheless, mattress sales have been rebounding (based on checks) due to reduced coronavirus-induced restrictions, with accelerating online sales. Online-focused players have been benefiting the most from this recent shift. The companies are benefiting from industry-wide increased demand as consumers are directing more discretionary spending to their homes instead of travel and entertainment.
Also, exceptional consumer demand for life-changing 360 smart beds, significant competitive advantages and strong business fundamentals are likely to have somewhat offset the above-mentioned headwinds in the second quarter.
Quantitative Model Prediction
Our proven model does not conclusively predict an earnings beat for Sleep Number this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here as you will see below.
Earnings ESP: Its Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sleep Number, which shares space with Leggett Platt Incorporated LEG, American Woodmark Corporation AMWD and WillScot Corporation WSC in the Zacks Furniture industry, currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
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