Sleep Number (NASDAQ:SNBR) stock is taking a beating on Wednesday after the mattress company announced results from its third-quarter 2023 earnings report.
The bad news for investors in SNBR stock starts with the company’s diluted earnings per share of -10 cents. That’s well below the 17 cents per share Wall Street was expecting. It’s also a surprise loss compared to diluted EPS of 22 cents in Q3 2022.
Also not helping SNBR stock today is revenue of $473 million for Q3. That’s also worse than the $514.52 million that analysts were expecting during the quarter. It also represents a 13% decrease year-over-year (YOY).
Shelly Ibach, Chair, President and CEO of Sleep Number, said the following in the earnings report:
“The third quarter was challenging for Sleep Number and the bedding industry as the consumer demand trajectory changed abruptly midway through the quarter […] In response, we acted quickly to further reduce costs, recalibrate our sales and marketing approach, and amend our credit agreement to provide additional covenant flexibility through the end of 2024.”
SNBR Stock Outlook
Sleep Number updated its outlook for the full year of 2023 in its latest earnings report as well. It now expects diluted EPS to be up to -70 cents while revenue will decrease in the “low double digits” compared to 2022. For the record, Wall Street’s estimates for 2023 include EPS of $1.33 and revenue of $2.01 billion.
SNBR stock is down 39.6% as of Wednesday morning.
There’s more stock market news traders will want to know about below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
