Mattress Firm Q4 Revenue Tops Views

Shares of

jumped over 4 percent in after-hours trading after the company reported upbeat revenue for the fiscal fourth quarter. However, the company's earnings missed analysts' estimates. The Houston, Texas-based company posted quarterly earnings of $6.6 million, or $0.19 per share, compared to $8.7 million, or $0.25 per share, in the year-ago period. On a non-GAAP adjusted basis, the company earned $0.41 per share. Its revenue climbed 91.7 percent to $598.3 million. However, analysts were expecting earnings of $0.48 per share on revenue of 562.52 million. Comparable-store sales surged 1.9 percent in the quarter. Adjusted income from operations rose to $36.7 million in the fourth quarter, from $19.6 million, in the year-ago period. Adjusted operating income margin narrowed to 6.1 percent of net sales from 6.3 percent in fiscal 2013. At the end of fiscal 2014, Mattress Firm had $13.5 million in cash and cash equivalents. "Fiscal 2014 was a monumental year for our company as we drove net sales for the full year by approximately 48%, representing year over year comparable-store sales growth of 6.1%, while adding 869 net new stores through nine acquisitions and 232 organic store openings," stated Steve Stagner, Mattress Firm's chief executive officer. "The momentum we've generated this year highlights the effectiveness of our growth plan and reaffirms our relative market share strategy." Mattress Firm projects FY15 adjusted earnings of $2.50 to $2.70 per share, on revenue of $2.465 billion to $2.515 billion. Analysts had expected earnings of $2.77 per share on revenue of $2.41 billion. The company also projects adjusted cash earnings of $3.80 to $4 per share. For the full year, Mattress Firm projects earnings of $2.50 to $2.70 per share, on revenue of $2.47 billion to $2.52 billion. Mattress Firm shares gained 4.36 percent to $66.82 in the after-hours trading session.