Select Comfort Earnings: Here’s Why Investors are Selling Shares Now

Select Comfort Corporation (NASDAQ:SCSS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 8.88%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Select Comfort Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 8.89% to $0.41 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Decreased 1.59% to $258.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Select Comfort Corporation reported adjusted EPS income of $0.41 per share. By that measure, the company missed the mean analyst estimate of $0.43. It missed the average revenue estimate of $287.95 million.

Quoting Management: As reported in early March, changes to our media buying negatively impacted traffic and sales, resulting in first-quarter underperformance. We took decisive action to correct the issue and are making steady progress against a backdrop of soft industry performance, said Shelly Ibach, president and CEO, Select Comfort. During the quarter, we progressed as planned in the other key areas of our customer-focused growth strategy, specifically exclusive distribution and product innovation.

Key Stats (on next page)…

Revenue increased 17.07% from $220.56 million in the previous quarter. EPS increased 86.36% from $0.22 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.38 to a profit $0.31. For the current year, the average estimate has moved down from a profit of $1.9 to a profit of $1.52 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet