Boston, MA 10/18/2013 (wallstreetpr) – Following the lower-than-expected earnings for the Q3.13 which ended September 28, 2013, Select Comfort Corp. (NASDAQ:SCSS) has assumed a downward spiral, much to the chagrin of the investors. Perhaps owing to the mattress maker’s lackluster show, analyst at Raymond James have brought the hacksaw down to their price target on the stock. They now expect the company to hit $26 in full-year view. This target reduction reflects almost $36.91% upside from the company’s current share value.
The company has also lowered its guidance for the year. SCSS’s new outlook is in the range of $1.14 and $1.22 per share. The previous in-house outlook was in the range of $1.30 and $1.45 per share. However, on average, analysts seen SCSS being a $1.33 per share candidate.
The reason for this guidance slash is obvious, that the consumer environment is not looking good in the foreseeable next three months. So the company has embarked on such strategies as cost reduction to stabilize its growth and obviously, please the investor community.
However, SCSS executives are saying that all is not lost on the mattress maker. It may have realized low-than-deserved earnings, but the future is promising. The mandarins at SCSS have noted that in long-term, the company is set for massive profits. The point of reference is in the companies increase in market share for the past four months in which each month has shown significant growth in sales.
Also, the company has noted improved trend from Q2.13, which is another source of confidence that the directors are trying to sell to investors.
The Plymouth-based company reported net income of $20.3 million, which represents $0.36 per share in the Q3.13. In a comparable quarter last year, the company posted $20.2 million, or $0.46 per share. On the revenue side, SCSS reported $263.7 million, against $246.8 million a year ago. This is nearly 7% jump in revenue.
