Overview
Bedding company Q4 revenue rose 55% but missed analyst expectations
Adjusted EPS for Q4 met analyst expectations
Company increased quarterly cash dividend by 13% to $0.17 per share
Outlook
Somnigroup expects 2026 adjusted EPS between $3.00 and $3.40
Somnigroup targeting sales to grow at a compound annual rate of mid single digits in long-term
Result Drivers
MATTRESS FIRM ACQUISITION - The acquisition of Mattress Firm significantly contributed to sales and operating income growth
GROSS MARGIN IMPROVEMENT - Gross margin improved due to operational efficiencies and favorable sales mix
SALES IMPACT - Tempur Sealy North America sales were negatively impacted by the accounting elimination of sales to Mattress Firm and the divestiture of Sleep Outfitters
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Miss | $1.87 bln | $1.93 bln (10 Analysts) |
Q4 Adjusted EPS | Meet | $0.72 | $0.72 (10 Analysts) |
Q4 EPS | $0.66 | ||
Q4 Adjusted Net Income | Slight Beat* | $153.70 mln | $152.88 mln (9 Analysts) |
Q4 Net Income | $140.80 mln | ||
Q4 Adjusted Operating Income | Slight Miss* | $267.80 mln | $269.48 mln (9 Analysts) |
Q4 Adjusted Gross Margin | 44.90% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the home furnishings peer group is "buy"
Wall Street's median 12-month price target for Somnigroup International Inc is $105.00, about 9.3% above its February 13 closing price of $96.04
The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 26 three months ago
Press Release: ID:nPn7bCKlHa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)