Bedding and comfort retailer Purple (NASDAQ: PRPL) will be reporting earnings this Tuesday morning. Here’s what investors should know.
Purple beat analysts’ revenue expectations last quarter, reporting revenues of $140.7 million, up 9.1% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly.
Is Purple 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 Purple’s revenue to decline 2.4% year on year, improving from the 13.2% decrease it recorded in the same quarter last year.
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.
Looking at Purple’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 8.9%, beating analysts’ expectations by 5.2%, and CBRE reported revenues up 18.2%, topping estimates by 2.5%. Monarch traded up 15.9% following the results while CBRE was down 3.4%.
Read our full analysis of Monarch’s results here and CBRE’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.8% on average over the last month. Purple is up 1.6% during the same time and is heading into earnings with an average analyst price target of $2.45 (compared to the current share price of $0.66).
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