Purple Innovation Analysts Boost Their Forecasts After Upbeat Q4 Results

Benzinga - by Avi Kapoor, Benzinga Staff Writer.

Purple Innovation, Inc. (NASDAQ: PRPL) reported upbeat fourth-quarter results on Tuesday.

Purple Innovation posted adjusted loss of 15 cents per share, compared to market expectations for a loss of 18 cents per share. The company’s quarterly sales came in at $145.900 million, beating estimates of $145.565 million, according to data from Benzinga Pro.

"The fourth quarter represented an encouraging finish to 2023 as sales finished within our guidance range and increased year-over-year for the first time in eight quarters," said Chief Executive Officer Rob DeMartini. "Throughout last year we made meaningful progress capturing market share and repositioning Purple as a premium brand despite ongoing industry headwinds. The launch of our innovative new mattresses and new marketing campaign fueled improved sales trends across all channels in the second half. Backed by marketing efficiencies, fourth quarter profitability was in-line with expectations highlighted by positive operating income in the month of December."

Purple Innovation said it sees FY24 revenue of $540 million to $560 million, versus analysts’ estimates of $546.53 million.

Purple Innovation shares fell 13% to trade at $1.7750 on Wednesday.

These analysts made changes to their price targets on Purple Innovation following merger news

• Wedbush raised the price target on Purple Innovation from $1.25 to $2.25. Wedbush analyst Seth Basham maintained an Outperform rating.
• Craig-Hallum raised the price target on Purple Innovation from $1 to $2. Craig-Hallum analyst Jeremy Hamblin maintained a Hold rating.
• Roth MKM lifted the price target on Purple Innovation from $2 to $2.5. Roth MKM analyst Matt Koranda upgraded the stock from Neutral to Buy.

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