NEWS: Mattress Firm Holding Corp. shares soared in extended trading Wednesday after the company reported better-than-expected revenue for its third quarter and raised its full-year revenue forecast.
DETAILS: The company, which has been on an acquisition spree, benefited from added stores, more traffic in its shops and increased advertising. Mattress Firm said it also put a number of sales initiatives in place during the quarter that encouraged sales associates to improve their productivity and capture a higher percentage of sales from customers.
NUMBERS: Net income increased to $18.1 million, or 53 cents per share, for the period, from $12.5 million, or 37 cents per share, last year. After adjusting for acquisition costs and other special items, it earned 55 cents per share, versus 47 cents per share last year.
Its revenue increased nearly 18 percent to $326.2 million, helped by a 2.9 percent gain in revenue from established stores and a boost from new and acquired sites.
Analysts polled by FactSet were anticipating earnings of 54 cents per share on revenue of $319.6 million.
The company opened 40 new stores and closed six stores, bringing the total number of company-operated stores to 1,155 as of the end of the fiscal quarter.
FUTURE: Mattress Firm raised its full-year revenue forecast, saying it expects roughly $1.22 billion for the year, up from its prior forecast of $1.19 billion to $1.21 billion. The company still anticipates earning between $1.75 and $1.83 per share for the year on an adjusted basis. Analysts are anticipating earnings of $1.76 per share on revenue of $1.2 billion
STOCK: Shares of the Houston-based company jumped nearly 12 percent to $38.23 in after-hours trading following the report. Its shares had fallen nearly 5 percent to close regular trading at $34.24.