Mattress Firm Expected To Deliver Double-Digit Growth

Mattress Firm Holding Corp MFRM is scheudled to release its first quarter earnings after Tuesday's bell.

The company’s earnings respond to some sort of cycle: peak in the third quarter each year, fall substantially on the fourth quarter, then recuperating in the second quarter of the next year.

Expectations for the current quarter a relatively low. According to Estimize, the Street anticipates earnings of $0.38 per share on revenue of $555.92 million. This estimate implies a 22.5 percent year-over-year increase in earnings, and a 66.9 percent surge in sales.

The second chart illustrates the evolution of sentiment over time. The Street’s consensus has been falling consistently since late-February, when it stood at $0.46 per share, to current levels, 21 percent below this estimate.

Analyst Ratings

Several major Wall Street research firms have weighed in on Mattress Firm recently. Last week, UBS reiterated a Buy rating, accompanied by a $68.00 price target.

About a month ago, analysts at Piper Jaffray downgraded the shares from Overweight to Neutral, trimming their price target from $77.00 to $62.00.

Wedbush initiated coverage this quarter with an Outperform rating and a $71.00 price target.

Barclays maintained an Overweight rating and a $74.00 price target. Citigroup rates the stock a Buy, and set a $76.00 price target in late March.