Bedding manufacturer Somnigroup (NYSE: SGI) will be reporting results this Thursday morning. Here’s what to expect.
Somnigroup missed analysts’ revenue expectations last quarter, reporting revenues of $1.87 billion, up 54.7% year on year. It was a slower quarter for the company, with a miss of analysts’ revenue estimates and full-year EPS guidance missing analysts’ expectations.
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 14.1% year on year, slowing from the 34.9% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. 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 Q1 results, giving us a hint as to what we can expect. Mohawk Industries delivered year-on-year revenue growth of 8%, missing analysts’ expectations by 0.5%, and Purple reported a revenue decline of 8.1%, falling short of estimates by 5.9%. Mohawk Industries traded down 5.3% following the results while Purple was also down 23.9%.
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 6% on average over the last month. Somnigroup’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $101.50 (compared to the current share price of $74.46).
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