SNBR Stock Recent News

AGL, BFIN and SNBR have been added to the Zacks Rank #5 (Strong Sell) List on March 15, 2024.

Sleep Number Co. NASDAQ: SNBR shares jumped 33% on its Q4 2023 earnings release. The consumer discretionary sector company is a leading manufacturer of smart adjustable beds and accessories.

The headline numbers for Sleep Number (SNBR) give insight into how the company performed in the quarter ended December 2023, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Sleep Number and other premium mattress brands are dealing with soft consumer demand, impacting sales and profitability. The company expects positive free cash flow in 2024, which has investors excited.

Sleep Number Corporation (SNBR) Q4 2023 Earnings Call Transcript

Sleep Number (SNBR) came out with a quarterly loss of $0.58 per share versus the Zacks Consensus Estimate of a loss of $0.90. This compares to loss of $0.24 per share a year ago.

SNBR's revenue growth has been driven more by price growth than volume growth, indicating it is not a high-growth company. The company has repositioned itself as a wellness technology company, known for its innovative Sleep Number beds. Despite some mixed performance metrics, there is a 30% margin of safety when valuing SNBR based on the Earnings Power Value, making it an investment opportunity.

Sleep Number manufactures and sells beds at a high price point, including smart capabilities through a mobile app. The company has faced challenges with decreasing demand and supply chain issues, along with a likely weakly perceived new product line relaunch. Sleep Number has a number of initiatives to improve earnings, including closings of 40-50 stores, and supply chain & marketing spend optimization.

Sleep, we all need it. But can you profit from it?

Chief Executive Shelly Ibach says the bedding industry has been operating at recessionary levels for two years.