Somnigroup Q1 adjusted EPS beats estimates on margin improvement

Somnigroup International

07/05/2026 11:43

Overview

Bedding manufacturer and retailer's Q1 net sales rose 12% but missed analyst expectations

Adjusted EPS for Q1 increased 20% and beat analyst expectations

Company announced pending $2.5 bln Leggett & Platt acquisition

Outlook

Somnigroup expects 2026 full-year adjusted EPS between $3.00 and $3.40

Company says outlook is subject to risks including tariffs and macroeconomic uncertainty

Result Drivers

MATTRESS FIRM INCLUSION - Full-quarter inclusion of Mattress Firm sales was the primary driver of net sales growth

MARGIN IMPROVEMENTS - Gross and operating margin gains in North America and International segments were driven by synergies, operational efficiencies, and favorable mix

HIGHER PROMOTIONAL EXPENSES - Mattress Firm's adjusted margins declined due to increased promotional spending, product mix, and fixed cost deleverage

Company press release: ID:nPnqyV1Na

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$1.80 bln
$1.83 bln (9 Analysts)
Q1 Adjusted EPS
Beat
$0.59
$0.57 (9 Analysts)
Q1 EPS
$0.49
Q1 Adjusted Net Income
Beat
$124.50 mln
$121.78 mln (9 Analysts)
Q1 Net Income
$104.20 mln
Q1 Adjusted Operating Income
Miss
$214.60 mln
$221.73 mln (8 Analysts)
Q1 Adjusted Gross Margin
43.60%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Somnigroup International Inc is $104.50, about 32.9% above its May 6 closing price of $78.62

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 26 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)