Stock to Track: Mattress Firm Holding Corp. (NASDAQ:MFRM)

Mattress Firm Holding Corp. (NASDAQ:MFRM) reported earnings for the three months ended April 2016 on June 09, 2016. The company earned $-0.1 per share on revenue of $839.39M. Analysts had been modeling earning per share of $-0.04 with $867.2M in revenue.

Mattress Firm Holding Corp. (NASDAQ:MFRM) announced its financial results for the first fiscal quarter (13 weeks) ended May 3, 2016. Net sales for the first fiscal quarter increased 49.2% over the prior year period to $839.4 million, reflecting incremental sales from acquired and new stores, partially offset by a comparable-store sales decline of 1.1%. The Company reported first fiscal quarter earnings (loss) per diluted share (“EPS”) on a generally accepted accounting principles (“GAAP”) basis of $(3.22), and EPS on a non-GAAP adjusted basis, excluding intangible asset impairment charges, acquisition-related costs, fixed asset impairment costs and severance charges (“Adjusted”), of $(0.17). Excluding the non-cash amortization of tradenames, Adjusted EPS excluding Tradename Amortization was $(0.10), compared with the Company’s guidance for $(0.07) to $0.00 in Q1.

Preliminary First Quarter Financial Summary

  • Net sales for the first fiscal quarter increased 49.2% as compared with the comparable prior year period to $839.4 million, reflecting incremental sales from acquired and new stores, partially offset by a comparable-store sales decline of 1.1%. Comparable-store sales growth in the prior year period was 1.3%.
  • The Company acquired 1,065 stores, opened 85 new stores and closed 37 stores, bringing the total number of Company-operated stores to 3,472 as of the end of the fiscal quarter.
  • Loss from operations was $167.7 million. Excluding a total of $181.4 million of intangible asset impairment charges, acquisition-related costs, fixed asset impairment costs and severance charges, Adjusted income from operations was $13.7 million, as compared with $29.0 million for the comparable prior year period. Adjusted operating income margin was 1.6% of net sales as compared to 5.2% in the first fiscal quarter of 2015, and included a 280 basis-point decline in gross margin, an 80 basis-point decrease from sales and marketing expense deleverage, and 20 basis-points of combined operating margin declines from franchise fees and losses on store closings, partially offset by a 20 basis-point improvement in general and administrative expense leverage. Please refer to “Reconciliation of Reported (GAAP) to Adjusted Statements of Operations Data” for a reconciliation of income from operations to Adjusted income from operations and other information.
  • Net loss attributable to Mattress Firm Holding Corp. was $119.2 million and GAAP EPS was $(3.22). Excluding $112.7 million, net of income taxes, of intangible asset impairment charges, acquisition-related costs, fixed asset impairment costs and severance charges, Adjusted net loss was $6.5 million and Adjusted EPS was $(0.17). Please refer to “Reconciliation of Reported (GAAP) to Adjusted Statements of Operations Data” for a reconciliation of net income (loss) and GAAP EPS to Adjusted net income (loss) and Adjusted EPS, respectively, and other information.

Mattress Firm Holding Corp. earnings per share showed an increasing trend of 42.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 279%.Analysts project EPS growth over the next 5 years at 20%. It has EPS annual growth over the past 5 fiscal years of 159% when sales grew 38.8. It reported 49.2% sales growth, and 0% EPS decline in the last quarter.

The stock is trading at $33.37, up 22.77% from 52-week low of $27.18. The stock trades down -49.06% from its peak of $65.51 and % below the consensus price target of $35.88. Its volume clocked up at 0.28 million shares which is lower than the average volume of 0.39 million shares. Its market capitalization currently stands at $1.28B.

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