Purple (PRPL) Q1 Earnings: What To Expect

Bedding and comfort retailer Purple (NASDAQ:PRPL) will be reporting earnings tomorrow after market hours. Here's what to expect.

Purple met analysts' revenue expectations last quarter, reporting revenues of $145.9 million, up 1.1% year on year. It was a solid quarter for the company, with an impressive beat of analysts' operating margin estimates and full-year revenue guidance topping analysts' expectations.

Is Purple a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Purple's revenue to grow 14.4% year on year to $122.1 million, a reversal from the 25% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Purple has missed Wall Street's revenue estimates three times over the last two years.

Looking at Purple's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Mohawk Industries's revenues decreased 4.5% year on year, beating analysts' expectations by 1.4%, and Leggett & Platt reported a revenue decline of 9.6%, falling short of estimates by 2%. Mohawk Industries traded up 4.7% following the results while Leggett & Platt was down 26.7%.

Read our full analysis of Mohawk Industries's results here and Leggett & Platt's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 3.4% on average over the last month. Purple is down 13% during the same time and is heading into earnings with an average analyst price target of $2.8 (compared to the current share price of $1.67).

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