UBS Remains Neutral on Mattress Firm (MFRM) Following 1Q EPS Miss

UBS maintained a Neutral rating on Mattress Firm Holding Corp. (NASDAQ: MFRM), and cut the price target to $34.00 (from $37.00), following the company's 1Q earnings report. EPS of -$0.10, came in below the consensus estimate of -$0.04. Management adjusted FY'16 EPS guidance to $2.25-$2.35 (previously $2.50-$2.60).

Analyst Michael Lasser commented, MFRM's 1Q gave less support to the bull case which stands on the company seeing significant profitability improvement once it integrates its stores. Eventually, it might get there. But, it's clear that there will be plenty of bumps along the way. This quarter an ERP hiccup, financing disruption, and product delays caused its comp of -1.1% to fall short of the consensus forecast of 2.7% (and our est of 2.5%). Trends improved over the last ten days and are now running up in the LSD range. But, there's just not a lot of evidence to endorse the view that it can sustain this rate without interruption. Disruptions are just more likely as MFRM is executing many moving parts. Until there is some progress and consistency, we think the shares will be range-bound."

For an analyst ratings summary and ratings history on Mattress Firm Holding Corp. click here. For more ratings news on Mattress Firm Holding Corp. click here.

Shares of Mattress Firm Holding Corp. closed at $33.58 yesterday.

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