Sleep Number Corporation (SNBR) Tops Q4 EPS by 20c, Beats on Revenues; Offers FY18 EPS Mid-Point Guidance Above Consensus

Note: EPS may not be comparable

Sleep Number Corporation (NASDAQ: SNBR) reported Q4 EPS of $0.39, $0.20 better than the analyst estimate of $0.19. Revenue for the quarter came in at $363 million versus the consensus estimate of $331.72 million.

• Fourth-quarter net sales grew 16% to $363 million, with full-year net sales up 10% to a record $1.44 billion
• Reported 2017 EPS growth of 41% to $1.55, including fourth-quarter EPS of $0.39
• Generated record full-year operating free cash flow of $113 million
• Increased its revolving credit facility from $153 million to $300 million
• Provides 2018 earnings outlook of $1.70 to $2.00 per diluted share, an increase of 10% to 29% versus 2017

Financial Outlook

The company expects to generate full-year 2018 earnings per diluted share of between $1.70 and $2.00, a 10% to 29% increase versus full-year 2017 earnings per diluted share of $1.55. The outlook assumes mid-to- high single digit sales growth for 2018. The 2018 outlook assumes an estimated effective income tax rate of 25%, based on the new tax legislation enacted in December 2017. The company anticipates 2018 capital expenditures to be approximately $50 million. Our outlook contemplates a slow growth economy.

GUIDANCE:

Sleep Number Corporation sees FY2018 EPS of $1.70-$2.00, versus the consensus of $1.84.

For earnings history and earnings-related data on Sleep Number Corporation (SNBR) click here.

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