NASDAQ$SNBR

Sleep Number Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Net sales decreased due to semiconductor chip supply constraints, but EPS exceeded expectations.

Sleep Number reported a decrease in net sales by 16% due to semiconductor chip supply constraints and softer consumer demand. However, the diluted EPS of $0.22 was ahead of expectations. The company revised its 2022 EPS outlook to $1.50 to $2.00 per diluted share.

  • Third-quarter net sales declined 16% versus the prior year due to semiconductor chip supply constraints.
  • Third-quarter diluted EPS of $0.22 exceeded expectations.
  • Revised 2022 EPS outlook to a range of $1.50 to $2.00 per diluted share.
  • Company is pursuing actions to improve supply, margin, and demand.

Headline financials

Total Revenue

$541M

Previous: $640M-15.6%
EPS (adj)

$0.22

Previous: $2.22-90.1%
Gross Profit Margin

56.1%

Previous: 61.0%-8.0%
Capital Expenditures

-$52.8M

Previous: -$49.4M-7.0%
Free Cash Flow

-$47.8M

Previous: $4.35M-1198.0%
Net Income

$5.03M

Previous: $53.7M-90.6%
Operating Income

$12.6M

Previous: $72.7M-82.6%
Gross Profit

$303M

Previous: $390M-22.4%
Cash & Equivalents

$1.35M

Previous: $1.83M-26.3%
Total Assets

$941M

Previous: $884M+6.5%
Stock-Based Comp

$542K

No prior period

Revenue & EPS history

Sleep Number · Revenue · Quarterly

$541M

Q3 2022-15.6%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Sleep Number · $530M total across 2 segments · Q3 2020

  • Retail Stores
    $457M
  • Online, Phone, Chat and Other
    $72.8M

Forward guidance

The company updated its full-year 2022 diluted EPS outlook to a range of $1.50 to $2.00 per share driven by insufficient and uneven flow of chip supply and softer demand. The outlook assumes flat net sales versus the prior year for the fourth quarter. The company anticipates 2022 capital expenditures of approximately $70 million.

Tailwinds

  • EPS outlook between $1.50 and $2.00
  • Expects flat net sales for Q4

Headwinds

  • Insufficient and uneven flow of chip supply
  • Softer demand

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.1%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-5.0%

Avg return

30 days after

49%

31 / 63 earnings

Positive

+38.8%

Q1 2020

Best reaction

-41.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-22.4%-37.1%-73.1%
Q4 2025-5.5%-18.3%-61.6%
Q3 2025-1.3%-0.4%-7.6%
Q1 2025+6.7%+18.6%+40.2%
Q4 2024-41.9%-45.6%-59.4%
Q3 2024+2.6%-1.9%+12.4%
Q2 2024+24.1%+6.6%+33.4%
Q1 2024-2.5%-6.6%-7.6%
Q4 2023+28.3%+45.4%+17.9%
Q3 2023-30.1%-39.4%-10.1%
Q2 2023-29.8%-29.6%-42.5%
Q1 2023-10.1%-10.9%-25.6%
Q4 2022+22.4%-12.2%-14.0%
Q3 2022-21.4%-22.8%-16.4%
Q2 2022+21.1%+31.8%+17.2%
Q1 2022-13.0%-14.5%-16.8%
Q4 2021+1.4%+5.0%-8.2%
Q3 2021+0.6%-0.4%-11.3%
Q2 2021-8.2%-12.1%-13.7%
Q1 2021-8.2%-4.7%-16.0%
Q3 2020+8.6%+7.0%+13.0%
Q2 2020-5.9%-9.8%-11.5%
Q1 2020+38.8%+50.3%+51.2%
Q4 2019+6.2%-5.4%-57.8%
Q3 2019+1.3%+5.5%+5.4%
Q2 2019+18.5%+21.0%+1.3%
Q1 2019-19.8%-25.2%-30.9%
Q4 2018+15.8%+21.3%+32.9%
Q3 2018+11.1%+10.2%+12.5%
Q2 2018-6.3%-10.9%+4.0%
Q1 2018-15.0%-20.0%-20.4%
Q4 2017-6.2%-4.5%-3.3%
Q3 2017+5.0%+11.3%+9.2%
Q2 2017+4.8%+4.5%+4.8%
Q1 2017+32.6%+25.0%+15.8%
Q4 2016+8.2%+11.7%+22.1%
Q3 2016-10.1%-8.4%+7.5%
Q2 2016-3.1%+0.1%+18.8%
Q1 2016+18.4%
Q4 2015-23.3%
Q3 2015+15.8%
Q2 2015-9.8%
Q1 2015-0.5%
Q4 2014+2.0%
Q3 2014+15.0%
Q2 2014+7.1%
Q1 2014+9.6%
Q4 2013+4.2%
Q3 2013-23.1%
Q2 2013-11.0%
Q1 2013-0.2%
Q4 2012-14.9%
Q3 2012-5.3%
Q2 2012+30.7%
Q1 2012-3.1%
Q4 2010+1.8%
Q4 2011+1.8%
Q3 2011-0.4%
Q2 2011-9.8%
Q1 2011-9.8%
Q3 2010+5.1%
Q2 2010-3.5%
Q1 2010+10.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro