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September 01, 2020 1:29pm
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Sleep Number (SNBR) Reports Q3: Everything You Need To Know Ahead Of Earnings

SNBR Cover Image

Bedding manufacturer and retailer Sleep Number (NASDAQ:SNBR) will be reporting results tomorrow after market close. Here’s what you need to know.

Sleep Number missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $408.4 million, down 11% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ earnings and EBITDA estimates.

Is Sleep Number a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Sleep Number’s revenue to decline 5.6% year on year to $446 million, improving from the 12.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 per share.

Sleep Number Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sleep Number has missed Wall Street’s revenue estimates five times over the last two years.

With Sleep Number being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for home furnishing and improvement retail stocks. However, the segment has faced declining investor sentiment as Sleep Number’s peer group is down 5% on average over the last month. Sleep Number is down 27.6% during the same time and is heading into earnings with an average analyst price target of $14 (compared to the current share price of $13.26).

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