NEW YORK (TheStreet) -- Shares of Select Comfort (SCSS) were slumping 9.49% to $22.74 on heavy trading volume late Wednesday afternoon after competing mattress retailer Tempur Sealy (TPX) issued downbeat third quarter guidance late yesterday.
Tempur Sealy said it expects its fiscal 2016 third quarter sales to fall below prior estimates.
The company also projects full-year sales to slide 1% to 3%, while it had previously anticipated growth in the mid-single digits.
Wall Street is looking for revenue of $911.03 million for the third quarter and $3.23 billion for the full-year.
Tempur Sealy now expects adjusted EBITDA for the year to be between $500 million and $525 million vs. its prior estimate of $525 million to $550 million.
Shares of Tempur Sealy were tumbling 23.88% to $56.67 on heavy trading volume late Wednesday afternoon, over 11.51 million shares trading vs. the 30-day average volume of roughly 878,000 shares.
Select Comfort is a Minneapolis-based mattress manufacturer and retailer.
More than 1.08 million shares of Select Comfort have traded so far on Wednesday vs. the 30-day average volume of about 409,000 shares.
Separately, TheStreet Ratings objectively rated Select Comfort stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.
You can view the full analysis from the report here: SCSS