Select Comfort Beats Up on Analysts Yet Again
Select Comfort (NAS: SCSS) reported earnings on Feb. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Select Comfort beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins increased, and net margins improved.
Select Comfort logged revenue of $189.1 million. The seven analysts polled by S&P Capital IQ predicted a top line of $181.2 million. GAAP sales were 27% higher than the prior-year quarter's $148.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.30. The eight earnings estimates compiled by S&P Capital IQ predicted $0.22 per share on the same basis. GAAP EPS of $0.27 for Q4 were 108% higher than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.9%, 10 basis points worse than the prior-year quarter. Operating margin was 10.6%, 290 basis points better than the prior-year quarter. Net margin was 8.1%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $226.2 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $863.7 million. The average EPS estimate is $1.37.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,504 members out of 2,842 rating the stock outperform, and 338 members rating it underperform. Among 950 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 880 give Select Comfort a green thumbs-up, and 70 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Select Comfort is buy, with an average price target of $23.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.
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