Mattress Firm Plunges on Q1 Results, Guidance

Mattress Firm MFRM released its fiscal first-quarter earnings results on Tuesday after the closing bell. The company reported adjusted net income of $10.5 million or $0.31 per share, which came in ahead of consensus EPS estimates of $0.25. Net sales in the quarter were up 38.1% to $209.81 million from $151.92 million last year. This came up short of analysts' consensus revenue estimates of $210.76 million. Same-store sales at the company were up by 16.1%. Looking ahead to Q2, the company sees sales between $270 million to $275 million and EPS of $0.26 to $0.29. This compares to analysts' expectations for the second-quarter of EPS of $0.27 on revenue of $277.80 million. Mattress Firm also raised its fiscal 2012 earnings outlook to a range of $1.46 to $1.50 from its previous outlook of $1.40 to $1.48. The company continues to expect sales between $1.03 billion to $1.06 billion. Wall Street analysts anticipate that MFRM will report EPS of $1.50 on revenue of $1.05 billion for fiscal 2012. In Tuesday's after hours trading session, MFRM shares have lost almost 12% to $31.12.