Bedding manufacturer Somnigroup (NYSE: SGI) will be announcing earnings results this Monday morning. Here’s what investors should know.
Somnigroup missed analysts’ revenue expectations last quarter, reporting revenues of $1.82 billion, down 3% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations and a slight miss of analysts’ EBITDA estimates.
Is Somnigroup a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Somnigroup’s revenue to grow 14.3% year on year, slowing from the 63.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Somnigroup has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Somnigroup’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Mohawk Industries delivered year-on-year revenue growth of 1%, missing analysts’ expectations by 0.9%, and Purple reported a revenue decline of 18.7%, falling short of estimates by 8.7%. Mohawk Industries traded up 7.2% following the results while Purple was down 10%.
Read our full analysis of Mohawk Industries’s results here and Purple’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 4.7% on average over the last month. Somnigroup is up 3.2% during the same time and is heading into earnings with an average analyst price target of $92.33 (compared to the current share price of $64.20).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
