Select Comfort Corp. (NASDAQ:SCSS) share prices rose 21.76% to $24.68 on Friday after the company printed its earnings report. Profits fell 55% but the stock managed to hold on to its gains.
Select Comfort Corp. (NASDAQ:SCSS) reported that its profit dropped to $12.97 million or $0.27 per share for Q1 2016, lower compared to $28.80 million or $0.54 per share in the first quarter of 2015. Analysts had projected $0.20 earnings per share. The company’s full-year earnings guidance is in a range of $1.25 to $1.45.
What gave Select Comfort Corp. (NASDAQ:SCSS) stock prices support is the company’s successful ERP system implementation during the reported period. “The system is already improving our customer experience, and we expect to realize operating efficiencies in the back half of this year,” announced Select Comfort CEO Shelly Ibach. She added that this makes the company well-positioned for accelerated long-term earnings growth.
Revenue of $353 million topped the analysts’ estimate of $341.63 million, representing 64% year-over-year growth. Revenue for the rest of the year is expected to rise from 13% to 15%, slightly higher than analysts’ expectations at around $1.34 billion.
Select Comfort Corp. (NASDAQ:SCSS) shares peaked at $24.90 after the report was released. Approximately 3 million shares traded hands then, surpassing the stock’s average daily volume of 713,050 shares. It was reported earlier in the month that the Swiss National Bank had a stake in this company, according to a recent SEC disclosure. The institutional investor owned 67,900 shares of the company’s stock at the end of the fourth quarter of 2015, representing a 0.13% stake.
Select Comfort Corp. (NASDAQ:SCSS) is a designer, manufacturer, marketer, retailer and servicer of a line of Sleep Number beds. This particular product offers SleepIQ technology sensors that work directly with the bed’s DualAir technology to monitor each individual’s sleep. Aside from that, the company offers a line of sleep products including FlextFit adjustable base technology and Sleep Number pillows, sheets and other bedding products.
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