Purple Innovation (PRPL) Reports Q3 Loss, Misses Revenue Estimates

Core Viewpoint - Purple Innovation reported a quarterly loss of $0.08 per share, better than the Zacks Consensus Estimate of a loss of $0.10, and an improvement from a loss of $0.18 per share a year ago, indicating a 20% earnings surprise [1] Financial Performance - The company posted revenues of $118.6 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 5.60%, and down from $140 million in the same quarter last year [2] - Over the last four quarters, Purple Innovation has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Purple Innovation shares have declined approximately 11.7% since the beginning of the year, contrasting with the S&P 500's gain of 20.1% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $132.12 million, and for the current fiscal year, it is -$0.48 on revenues of $498.05 million [7] - The estimate revisions trend for Purple Innovation is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6] Industry Context - The Consumer Products - Staples industry, to which Purple Innovation belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8]