Select Comfort Corporation (NASDAQ: SCSS)
Select Comfort CorporationShares Pop On Excellent Q1 Results
Select Comfort Corporation (SCSS), a company that designs, manufactures, markets, retails sleep number beds yesterday reported their first quarter 2017 financial results.
Select Comfort reported first quarter earnings of $0.56 per share which beat analyst expectations of $0.46 per share. Select Comfort reported first quarter revenues of $393.9 million which beat analyst expectations of $370.2 million.
Select Comfort Corporation CEO’s Comments
“Consumers are responding enthusiastically to our brand and differentiated products. Our investments over the past few years have made us a stronger competitor and this is evident in our first quarter results,” said Shelly Ibach, President and CEO of Select Comfort. “In the second quarter, we will begin the phased introduction of the revolutionary Sleep Number 360 smart beds. This innovation will set a new standard for what people should expect from their bed.” Business Wire
SCSS Technical Analysis
SCSS opened trading yesterday at $25.01 which was down from the previous day’s trading close of $25.03. SCSS closed trading yesterday at $25.87 and spiked up after market to $29.29, equivalent to a 13% increase from the closing price. Taking a look at the daily chart we can see that the last time SCSS traded above these levels we have to go back to July 16th, 2015 when it traded at $30.35.
Taking a closer look at the daily chart we can see that before the spike up SCSS had already been in an overall upward trend dating back to February 7th when it traded at $19.53. SCSS has a float of 42 million shares and traded 1.85 times the normal daily trading volume on Wednesday.
For trading purposes, I would like to see SCSS open trading on Thursday above $28.15 and if it does I would be looking to take a long position at the bell. However, I would like to see it come back and test the VWAP for a better entry. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Select Comfort Corporation, incorporated on February 27, 1987, is a designer, manufacturer, marketer, retailer and servicer of a line of Sleep Number beds.
The Company offers consumers individualized sleep solutions and services, which include a complete line of Sleep Number beds, bases and bedding accessories. Its Sleep Number bed offers SleepIQ technology sensors that work directly with the bed’s DualAir technology to track each individual’s sleep.
The Sleep Number bedding collection comprises a line of sleep products that are designed to solve sleep issues. It offers FlextFit adjustable bases, and Sleep Number pillows, sheets and other bedding products.
It offers Sleep Number beds in ranges within the mattress category, and in a range of sizes, including twin, full, queen, eastern king and California king. It also offers an assortment of temperature-balancing products.
The Company offers Sleep Number beds in series, including Classic Series, Performance Series, Innovation Series and Memory Foam Series. The Classic Series includes the Sleep Number c2 and c4 beds.
The Performance Series includes the Sleep Number p5 and p6 beds. The Memory Foam Series includes the Sleep Number m7 bed. The Innovation Series includes the Sleep Number i8 and i10 beds.
The Company offers Comfort Service home delivery and setup, which includes assembly and mattress removal. In selected markets, it provides home delivery, assembly and mattress removal services through third-party providers.
In addition, it also offers the DualTemp layer, which features active air technology that allows each person to select his or her ideal temperature at the simple touch of a button. The DualTemp layer can be used with any mattress brand or adjustable base. Reuters