Tempur Sealy’s 3Q Blows Past Expectations

NEWS: Tempur Sealy International Inc. shares soared 13 percent in extended trading Wednesday, after the mattress maker moved to a profit for its third quarter and its revenue jumped on its recent acquisition of Sealy.

DETAILS: The company, formerly known as Tempur-Pedic International Inc., completed its $228.6 million acquisition of Sealy Corp. in March. The deal was intended to give the company an edge in the increasingly competitive mattress industry, combining its specialty products with Sealy’s more traditional mattress lines to appeal to a broader audience. The prior year’s quarter does not include Sealy.

NUMBERS: Tempur Sealy earned $40.2 million, or 65 cents per share, for the quarter. That’s compared with a loss of $2 million, or 3 cents per share, last year. After adjusting for transaction costs and other special items, it earned 73 cents per share versus 70 cents per share. Its revenue more than doubled, to $735.5 million from $347.9 million.

The quarter far exceeded market expectations. Analysts polled by FactSet had forecast earnings of 69 cents per share on revenue of $710 million.

FUTURE: The company confirmed its full-year forecast of earnings of $2.25 to $2.40 per share on an adjusted basis, with sales between $2.43 billion and $2.45 billion. Analysts were anticipating earnings of $2.33 per share on revenue of $2.44 billion.

STOCK: Shares of the Lexington, Ky., company soared $5.14, to $45.25, in after-hours trading following the report. Its stock had fallen 20 cents to close regular trading at $40.11.