Bedding and comfort retailer Purple (NASDAQ:PRPL) will be announcing earnings results tomorrow afternoon. Here’s what investors should know.
Purple missed analysts’ revenue expectations by 6.3% last quarter, reporting revenues of $120.3 million, up 2% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations.
Is Purple a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Purple’s revenue to decline 9.6% year on year to $126.6 million, a further deceleration from the 2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Purple has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Purple’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Mohawk Industries’s revenues decreased 1.7% year on year, meeting analysts’ expectations, and Leggett & Platt reported a revenue decline of 6.3%, in line with consensus estimates. Mohawk Industries traded down 13.7% following the results while Leggett & Platt was up 4%.
Read our full analysis of Mohawk Industries’s results here and Leggett & Platt’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Purple’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $2.12 (compared to the current share price of $0.91).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
