Mattress maker Somnigroup's Q2 sales jumps 52.5%, buys stake in Fullpower-AI for $25 mln
Overview
Somnigroup Q2 sales rise 52.5% but miss analyst expectations, per LSEG data
Adjusted EPS for Q2 beats consensus, reflecting strong operational performance
Company raises full-year 2025 financial guidance, indicating confidence in business strategy
Acquires 15.6% equity interest in biosensing AI solutions maker Fullpower-AI with $25 mln investment
Outlook
Somnigroup raises full-year 2025 adjusted EPS guidance to $2.40-$2.70, including Mattress Firm operations
Result Drivers
MATTRESS FIRM INTEGRATION - Significant sales growth driven by Mattress Firm acquisition, contributing $948.8 mln to net sales
DIRECT SALES GROWTH - Direct sales increased to 66% of net sales, up from 23% in the previous year
INTERNATIONAL EXPANSION - International net sales rose 15% due to new product launches, despite gross margin pressure from commodity costs
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $1.88 bln | $1.89 bln (9 Analysts) |
Q2 Adjusted EPS | Beat | $0.53 | $0.51 (9 Analysts) |
Q2 EPS |
| $0.47 |
|
Q2 Adjusted Net Income | Beat | $113.10 mln | $108.60 mln (8 Analysts) |
Q2 Net Income |
| $99 mln |
|
Q2 Adjusted Operating Income | Beat | $224.40 mln | $216.50 mln (8 Analysts) |
Q2 Adjusted Gross Margin |
| 44.2% |
|
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 $76.00, about 3.1% above its August 6 closing price of $73.64
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 21 three months ago
Press Release: ID:nPn9mD7b9a
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