Mattress Firm Holding Corp (NASDAQ: MFRM)
Yesterday, shares of Mattress Firm announced quarterly earnings that missed analysts expectations sending the shares lower in after-market trading. According to briefing.com as posted by Yahoo Finance “Mattress Firm misses by $0.06, reports revs in-line; reaffirms FY16 EPS guidance, raises FY16 revs , Reports Q1 (Apr) earnings of $0.33 per share, $0.06 worse than the Capital IQ Consensus Estimate of $0.39; revenues rose 68.7% year/year to $562.6 mln vs the $565.84 mln consensus, reflecting comparable-store sales growth of 1.3% and incremental sales from new and acquired stores.” For the average investor all of these numbers can get quite confusing when it seems revenues rose yet earning per share lagged poorly which came from from new or acquired stores. Shares were only off modestly, down 1.56% or $0.96 at $60.70 in after-market trading. During the regular trading session on Tuesday the stock closed up $1.43 or 2.37% at $61.66.
MFRM & Competition
Mattress Firm is ranked third in their category of publicly traded firms in market cap valuations in the bedding and furniture industry. Leading the pack is Costco, followed by Macy’s and then Mattress Firm according to Yahoo Finance competitors list. While there are many players and competitors in this area, just who is their number one competitor in actuality. Whether it’s a publicly traded company or a combination of a few smaller non public trading firms , the industry is huge and very profitable. Let’s face it, we spend nearly one third of our lives in bed with 8 hours of sleep as the recognized recommended amount of sleep for human beings.
The daily chart of Mattress Firm from late 2014 until the present shows some wild swings both up and down in the share price. Holders of this equity therefore must have a long-term view and a stomach made of steel to withstand such huge fluctuations. One particularly interesting fact which trained market trading professionals will quickly notice is that the 50 day moving average and the 200 day moving average are crossing or touching each other at the current price level. Historically, this is extremely important for technical traders. The next few days to weeks will therefore be extremely important to which trend Mattress Firm takes.
About Mattress Firm
Mattress Firm Holding Corp., through its subsidiaries, operates as a specialty retailer of mattresses, and related products and accessories in the United States. It operates in two segments, Retail Operations and Franchise Operations. The company also operates an e-commerce Website. As of February 3, 2015, it operated and franchised approximately 2,200 stores across 40 states under the Mattress Firm and Sleep Train brand names. The company was founded in 1986 and is headquartered in Houston, Texas. Yahoo! Finance