The Q2 2014 earnings report for mattress stock Select Comfort Corp (NASDAQ: SCSS), a potential peer or competitor of other mattress players like Mattress Firm Holding Corp (NASDAQ: MFRM) and Tempur Sealy International Inc (NYSE: TPX), is due out on Wednesday after the market closes. Aside from the Select Comfort Corp earnings report, it should be said that the estimated release date for the Mattress Firm Holding Corp Q2 2014 earnings report is the the week of September 4th while the estimated date for the Tempur Sealy International Inc Q2 2014 earnings report is the week of July 21st. And while the last earnings report from Select Comfort Corp did not cause shares to move much, shares plunged 19% in January as preliminary fourth quarter results reignited concerns over growth going forward. This came after a 25% plunge after an October earnings report badly missed expectations.
What Should You Watch Out for With the Select Comfort Corp Earnings Report?First, here is a quick recap of Select Comfort Corp's recent earnings history from Yahoo! Finance:
| EPS Est | 0.24 | 0.43 | 0.15 | 0.32 |
| EPS Actual | 0.18 | 0.36 | 0.12 | 0.31 |
| Difference | -0.06 | -0.07 | -0.03 | -0.01 |
| Surprise % | -25.00% | -16.30% | -20.00% | -3.10% |
Back in mid April, Select Comfort Corp reported a 7% first quarter net sales increase to $276 million, operating income decreased to $25.8 million from $35.2 million in the first quarter of 2013 and earnings per diluted share of $0.31 verses $0.41 on an as-adjusted basis (excluding CEO transition benefit). Select Comfort Corp was also expecting full-year 2014 earnings per diluted share to approximate full-year 2013 adjusted earnings per diluted share of $1.07 with this outlook assuming mid- to high-single-digit total revenue growth and the addition of 20 to 30 net new stores during the year.
This time around and according to the Yahoo! Finance analyst estimates page, the consensus expects revenue of $223.74M and EPS of $0.14 - down from EPS of $0.16 expected ninety days ago.
On the news front and in late May, Piper Jaffray said April sales for the mattresses industry increased 3% year-over-year according to ISPA. They see these numbers as in-line to slightly better than anticipated but they continue to favor Mattress Firm Holding Corp and Tempur Sealy International Inc in the mattress space.
What do the Select Comfort Corp Charts Say?The latest technical chart for Select Comfort Corp shows that after taking two big hits late last year, the stock has slowly clawed back to higher levels:
However and since the end of the recession, Select Comfort Corp has been a real outperformer plus Mattress Firm Holding Corp and Tempur Sealy International Inc have also put in respectable performances:
The technical charts for Mattress Firm Holding Corp and Tempur Sealy International Inc also show uptrends albeit the latter has produced a multiple top:
Investors might want to review what happened last October and again at the beginning of this year to see whether they will sleep comfortably going into another Select Comfort Corp earnings report. Then again, perhaps the worst is over and there could be some upside if there is a positive surprise.
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