Overview

* Somnigroup ( SGI ) 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 ( SGI ) 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/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $1.88 $1.89

bln bln (9

Analysts

)

Q2 Beat $0.53 $0.51 (9

Adjusted Analysts

EPS )

Q2 EPS $0.47

Q2 Beat $113.10 $108.60

Adjusted mln mln (8

Net Analysts

Income )

Q2 Net $99 mln

Income

Q2 Beat $224.40 $216.50

Adjusted mln mln (8

Operatin Analysts

g Income )

Q2 44.2%

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 $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:

(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.)