Investment Thesis
Sleep Number Corp. (SNBR) is reporting its second quarter results (ending June 27th, 2020) today, after market close. The company is poised to beat analysts' estimates as performance metrics distributed by the company during the months of the pandemic demonstrate resilient sales.
Moreover, the variable nature of the company's cost acts as a shock absorbent to the expected decrease in sales. Even after considering increased borrowing costs and lower gross margin (resulting from product discounts), the Wall Street analysts' EPS estimates fall out of the EPS range forecasted in this analysis.