Select Comfort Earnings Preview

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Watch Select Comfort's (NAS: SCSS) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Wednesday. Select Comfort develops, manufactures, markets, and distributes adjustable-firmness beds and other sleep-related products.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Select Comfort, with six of nine rating it a buy and the remainder rating it a hold. Analysts don't like Select Comfort as much as competitor La-Z-Boy overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $182.4 million in revenue this quarter. That would represent a rise of 14% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.27 per share. Estimates range from $0.25 to $0.29.

What our community says:
CAPS All-Stars are solidly backing the stock with 90.2% granting it an outperform rating. The community at large concurs with the All-Stars with 88.3% giving it a rating of outperform. Fools are gung-ho about Select Comfort and haven't been shy with their opinions lately, logging 1,478 posts in the past 30 days. Select Comfort's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Select Comfort's profit has risen year over year by an average of 42% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

63.5%

63.8%

63.0%

62.5%

Operating Margin

10.9%

13.7%

7.7%

10.5%

Net Margin

7.0%

8.6%

4.8%

6.6%

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add Select Comfort now.

Motley Fool newsletter services have recommended buying shares of Select Comfort.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

At the time this article was published

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