NEW YORK (TheStreet) -- Shares of Select Comfort (SCSS) were slumping 11.82% to $19.03 on heavy trading volume early Thursday afternoon following the company's 2016 third quarter earnings report released late yesterday.

The maker of Sleep Number beds posted earnings of 46 cents per diluted share, missing analysts' expectations for earnings of 57 cents per share.

Revenue for the quarter was $368 million. Wall Street was looking for $392 million in revenue.

Same-store sales declined by 8% in the quarter, higher than analysts' projections of a 1.2% drop.

For 2016, the Minneapolis-based company cut its outlook for earnings per share to the range of $1.15 to $1.25, vs. prior estimates of $1.25 to $1.45. Wall Street anticipates earnings of $1.23 per share in the year.

Bank of America/Merrill Lynch downgraded the stock to "underperform" from "neutral" with a $16 price target following the results, the Fly reports.

Select Comfort could struggle to regain lost sales due to growing consumer volatility during the U.S. presidential election, the firm said.

Additionally, higher average prices could further pressure organic sales growth, BofA/Merrill Lynch noted.

More than 5.65 million shares of Select Comfort have traded so far today vs. the 30-day average volume of about 658,000 shares.

Separately, TheStreet Ratings objectively rated this 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 a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow.

You can view the full analysis from the report here: SCSS