Overview

* Somnigroup ( SGI ) 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 ( SGI ) raises full-year 2025 adjusted EPS guidance to $2.60-$2.75

* Somnigroup ( SGI ) 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/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $2.12 $2.05

bln bln (9

Analysts

)

Q3 Beat $0.95 $0.85 (9

Adjusted Analysts

EPS )

Q3 EPS $0.83

Q3 Beat $201.40 $181.40

Adjusted mln mln (8

Net Analysts

Income )

Q3 Net $177.40

Income mln

Q3 Beat $343.70 $314.60

Adjusted mln mln (8

Operatin Analysts

g Income )

Q3 45.60%

Adjusted

Gross

Margin

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 ( SGI ) 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:

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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.)