Mattress maker Somnigroup tops Q3 sales estimates, raises guidance

Somnigroup International

06/11/2025 11:47

Overview

Somnigroup Q3 sales grew 63.3% yr/yr, beating analyst expectations

Adjusted EPS for Q3 beats consensus, reflecting strong operational execution

Company raises full-year 2025 financial guidance, indicating confidence in performance

Outlook

Somnigroup raises full-year 2025 adjusted EPS guidance to $2.60-$2.75

Somnigroup notes potential risks from tariffs and macroeconomic conditions

Result Drivers

MATTRESS FIRM ACQUISITION - Inclusion of Mattress Firm sales significantly boosted Q3 net sales and operating income

SYNERGIES - Realized sales and cost synergies from Mattress Firm acquisition drove operating income growth

IMPROVED MARGINS - Gross margin improvements attributed to operational efficiencies and fixed cost absorption

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$2.12 bln
$2.05 bln (9 Analysts)
Q3 Adjusted EPS
Beat
$0.95
$0.85 (9 Analysts)
Q3 EPS
$0.83
Q3 Adjusted Net Income
Beat
$201.40 mln
$181.40 mln (8 Analysts)
Q3 Net Income
$177.40 mln
Q3 Adjusted Operating Income
Beat
$343.70 mln
$314.60 mln (8 Analysts)
Q3 Adjusted Gross Margin
45.60%


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 $88.00, about 9.5% above its November 5 closing price of $79.60

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nPn9NBzk7a

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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.)