Select Comfort (Nasdaq: SCSS) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Wednesday, July 20. Select Comfort develops, manufactures, markets, and distributes adjustable-firmness beds and other sleep-related accessory products.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Select Comfort, with five of eight rating it a buy and the remainder rating it a hold. Analysts don't like Select Comfort as much as competitor La-Z-Boy overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared with three months ago.
  • Revenue forecasts: On average, analysts predict $155.7 million in revenue this quarter. That would represent a rise of 12.1% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.17 per share. Estimates range from $0.16 to $0.19.

What our community says:
CAPS All-Stars are solidly behind the stock, with 92.3% giving it an "outperform" rating. The community at large backs the All-Stars, with 88.3% assigning it a rating of "outperform." Fools are gung-ho about Select Comfort and haven't been shy with their opinions lately, logging 1,477 posts in the past 30 days. Select Comfort's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Select Comfort's income has fallen year over year by an average of 42.7%. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 

Quarter Q1 Q4 Q3 Q2
Gross Margin 63.8% 63% 62.5% 62.2%
Operating Margin 13.7% 7.7% 10.5% 7.2%
Net Margin 8.6% 4.8% 6.6% 4.5%
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