On Thursday, shares of Sleep Number bed manufacturer Select Comfort Corp. are skyrocketing, up over 23% in late-morning trading after the company reported better-than-expected first-quarter fiscal 2017 financial results.
Earnings per share more than doubled from the prior-year period, coming in at 56 cents per share and also surpassing the Zacks Consensus Estimate of 46 cents per share. Net sales grew 12% year-over-year to $393.9 million, beating our consensus estimate as well. Comparable store sales during Q1 increased 3% thanks to growth in new stores and steady mall traffic.
Gross profit came in at $246.5 million, expanding 340 basis points (bps) to 62.6% and increasing 17.9% from the year-ago period.
"Consumers are responding enthusiastically to our brand and differentiated products. Our investments over the past few years have made us a stronger competitor and this is evident in our first quarter results," said Shelly Ibach, president and CEO of Plymouth-based Select Comfort, in a statement.
Looking ahead to Q2, Select Comfort is planning a phased-in introduction of the Sleep Number 360 smart bed, and Ibach told analysts on a conference call Wednesday that pilot tests of the bed in limited stored showed positive customer reaction to the technology.
Select Comfort raised its 2017 full-year outlook, and the company now expects to earn between $1.25 and $1.50 per share, compared to its previous guidance of $1.20 to $1.40 per share; this outlook also includes costs of 15 to 22 cents per share associated with the launch of the Sleep Number 360.
Currently, SCSS is a #3 (Hold) on the Zacks Rank, and has gained over 14% year-to-date.
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On Thursday, shares of Sleep Number bed manufacturer Select Comfort Corp. are skyrocketing, up over 23% in late-morning trading after the company reported better-than-expected first-quarter fiscal 2017 financial results.
Earnings per share more than doubled from the prior-year period, coming in at 56 cents per share and also surpassing the Zacks Consensus Estimate of 46 cents per share. Net sales grew 12% year-over-year to $393.9 million, beating our consensus estimate as well. Comparable store sales during Q1 increased 3% thanks to growth in new stores and steady mall traffic.
Gross profit came in at $246.5 million, expanding 340 basis points (bps) to 62.6% and increasing 17.9% from the year-ago period.
"Consumers are responding enthusiastically to our brand and differentiated products. Our investments over the past few years have made us a stronger competitor and this is evident in our first quarter results," said Shelly Ibach, president and CEO of Plymouth-based Select Comfort, in a statement.
Looking ahead to Q2, Select Comfort is planning a phased-in introduction of the Sleep Number 360 smart bed, and Ibach told analysts on a conference call Wednesday that pilot tests of the bed in limited stored showed positive customer reaction to the technology.
Select Comfort raised its 2017 full-year outlook, and the company now expects to earn between $1.25 and $1.50 per share, compared to its previous guidance of $1.20 to $1.40 per share; this outlook also includes costs of 15 to 22 cents per share associated with the launch of the Sleep Number 360.
Currently, SCSS is a #3 (Hold) on the Zacks Rank, and has gained over 14% year-to-date.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider: Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon, electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think. See This Stock for Free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>