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Wednesday, October 19, 2016

Select Comfort (SCSS) reported earnings on Wed 19 Oct 2016 (a/h)

** charts before earnings **



 



** charts after earnings **






Select Comfort misses by $0.01, misses on revs; co lowers FY16 EPS and revenue guidance given its soft outlook :
  • Reports Q3 (Sep) earnings of $0.56 per share, $0.01 worse than the Capital IQ Consensus of $0.57; revenues fell 1.6% year/year to $368 mln vs the $391.03 mln Capital IQ Consensus.
  • Co lowers FY16 EPS guidance to $1.15-1.25 vs. $1.23 Capital IQ Consensus Estimate, down from $1.25-1.45
  • Co also lowers revenue guidance...
    • The outlook assumes high single-digit sales growth for the full year (co prior guidance: The outlook assumes low-teen sales growth for the full year)
      • The outlook also assumes an 11% increase in store count in 2016 and capital expenditures of $65 million, compared with $86 million in 2015
      • "Our outlook does not contemplate a further deterioration of the consumer spending environment."

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