SNBR - Sleep Number +7% after sales and margins top expectations

Sleep Number (SNBR) rallies after reporting comparable sales growth of 11.0% in Q3 vs. +10.7% consensus. "For the third consecutive year, since transitioning to our smart beds, our Q3 results reflect double-digit demand growth. We again demonstrated the resilience of our vertical business model through our top and bottom-line performance and a trailing twelve months ROIC of nearly 21%," notes CEO Shelly Ibach. Gross margin came in at 63.1% of sales vs. 61.7% consensus and operating margin was 13.1% vs. 7.1% consensus. Looking ahead, Sleep Number sees FY20 sales growth of 7% to 8% and FY20 EPS of ~$4.00 vs. $2.89 consensus. Shares of Sleep Number are up 7.05% in premarket action to $62.26 (52-week high).Previously: Sleep Number EPS beats by $0.79, beats on revenue

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Sleep Number +7% after sales and margins top expectations