Bedding manufacturer Somnigroup (NYSE: SGI) will be announcing earnings results tomorrow morning. Here’s what you need to know.
Somnigroup beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $1.21 billion, up 3.2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Somnigroup a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Somnigroup’s revenue to grow 37.2% year on year to $1.63 billion, a reversal from the 1.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Somnigroup has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Somnigroup’s peers in the home furnishings segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Leggett & Platt’s revenues decreased 6.8% year on year, meeting analysts’ expectations, and Purple reported a revenue decline of 13.2%, in line with consensus estimates. Leggett & Platt traded up 32% following the results.
Read our full analysis of Leggett & Platt’s results here and Purple’s results here.
There has been positive sentiment among investors in the home furnishings segment, with share prices up 12.7% on average over the last month. Somnigroup is up 11.9% during the same time and is heading into earnings with an average analyst price target of $72.20 (compared to the current share price of $60.96).
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