Bedding and comfort retailer Purple (NASDAQ: PRPL) will be reporting earnings this Wednesday afternoon. Here’s what you need to know.
Purple missed analysts’ revenue expectations last quarter, reporting revenues of $98.27 million, down 6.5% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly.
Is Purple a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Purple’s revenue to decline 11% year on year, a deceleration from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
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 delivered year-on-year revenue growth of 1%, missing analysts’ expectations by 0.9%, and Hilton Grand Vacations reported revenues up 50.8%, topping estimates by 39.5%. Mohawk Industries traded up 7.2% following the results while Hilton Grand Vacations was also up 8.2%.
Read our full analysis of Mohawk Industries’s results here and Hilton Grand Vacations’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 5.7% on average over the last month. Purple is up 33.5% during the same time and is heading into earnings with an average analyst price target of $25 (compared to the current share price of $2.91).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
