Sleep Number Corporation (SNBR) Tops Q3 EPS by 79c, Revenues Beat; Offers FY20 EPS Guidance Above Consensus
Sleep Number Corporation (NASDAQ: SNBR) reported Q3 EPS of $1.79, $0.79 better than the analyst estimate of $1.00. Revenue for the quarter came in at $531.16 million versus the consensus estimate of $515.83 million.
- Third quarter net sales grew 12% to a record $531 million, with demand growth of 16%
- Third quarter operating income grew 78% and diluted EPS grew 90% to a record $1.79
- Generated a 51% increase in year-to-date operating cash flows, and a trailing twelve-months ROIC of 20.8%
- Provides 2020 earnings outlook of approximately $4.00 per diluted share, a 48% increase versus full-year 2019 earnings per diluted share of $2.70, on estimated net sales growth of 7% to 8%
"Our exceptional third quarter performance reflects the ongoing relevance of our life-changing 360® smart beds as consumers deepen their understanding of the importance of quality sleep to their overall health and wellness,” said Shelly Ibach, President and CEO. “For the third consecutive year, since transitioning to our smart beds, our Q3 results reflect double-digit demand growth. We again demonstrated the resilience of our vertical business model through our top and bottom-line performance and a trailing twelve months ROIC of nearly 21%. I am thankful for our team\'s amazing dedication to our mission, their ingenuity and how they keep each other safe, healthy and happy. Driven by our purpose, we are accelerating our strategic initiatives, strengthening our competitive advantages and creating meaningful value for our customers, team, business partners and shareholders.”
GUIDANCE:
Sleep Number Corporation sees FY2020 EPS of $4.00, versus the consensus of $2.77.
The company expects to generate full-year 2020 earnings per diluted share of approximately $4.00, which would represent a 48% increase versus full-year 2019 earnings per diluted share of $2.70. The outlook assumes 7% to 8% net sales growth for 2020, including an estimated two percentage points of growth and approximately 25 cents per share from the 53rd week. The company also intends to resume share repurchases in the fourth quarter and to operate, over time, with leverage of 2.5x to 3.0x EBITDAR, with seasonal fluctuations expected.
For earnings history and earnings-related data on Sleep Number Corporation (SNBR) click here.