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Select Comfort Reiterates 2013 Guidance - Analyst Blog

Posted: 11/13/2013 1:40:00 PM
Referenced Stocks: BBY;FIVE;HBI;SCSS

Mattress retailer, Select Comfort Corporation ( SCSS ), reiterated its outlook for 2013, which it had trimmed at the time of the announcement of third-quarter 2013 results on Oct 16, 2013.

The company now maintains its full-year 2013 GAAP earnings guidance in the range of $1.14-$1.22 per share. It also reaffirmed the fourth-quarter earnings projection of 18-26 cents a share. Net sales are still expected to grow at a low double-digit rate during the final quarter.

This manufacturer of premium quality, innovative adjustable-firmness beds and other sleep-related products had anticipated comparable-store sales to grow in the mid single-digits.

Select Comfort reported third-quarter earnings per share of 36 cents, which came below the Zacks Consensus Estimate of 42 cents and fell 21.7% from the year-ago quarter. Tough macroeconomic conditions, higher costs and lower-than-expected sales were the primary factors behind the dismal performance. Consequently, the company lowered its full-year earnings guidance. (Please Read: Select Comfort Misses Earnings, Guides Low ).

A downtrend was triggered in the Zacks Consensus Estimate following the company's lower-than-anticipated results and truncated guidance. This is evident from the movement witnessed in the Zacks Consensus Estimate that dropped 12.1% to $1.16 for 2013 and 15.7% to $1.40 per share for 2014 in the past 30 days.

With the Zacks Consensus Estimate for both 2013 and 2014 going down, the company now has a Zacks Rank #5 (Strong Sell).

Other stocks that are worth considering  include Hanesbrands Inc. ( HBI ), Best Buy Co., Inc. ( BBY ) and Five Below, Inc. ( FIVE ). While Hanesbrands and Best Buy carry a Zacks Rank #1 (Strong Buy), Five Below has a Zacks Rank #2 (Buy).

BEST BUY (BBY): Free Stock Analysis Report

FIVE BELOW INC (FIVE): Free Stock Analysis Report

HANESBRANDS INC (HBI): Free Stock Analysis Report

SELECT COMFORT (SCSS): Free Stock Analysis Report

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