Select Comfort Beats Q3 Views; Boosts Outlook
Select Comfort Corp. (NASDAQ: SCSS) shares jumped in Wednesday's extended session after the mattress company posted third-quarter results and a full year outlook well ahead of Wall Street's expectations.
Select gained more than 13 percent recently, changing hands at $24.50 a share.
The Minneapolis-based mattress retailer raised its 2014 earnings forecast to $1.12 a share, from $1.07 a share. Wall Street expected 2014 earnings of $1.10 a share.
Select, which boosted its stock buyback authorization to $250 million, said it will increase share repurchase activity "by as much as 50 percent" beginning in the fourth quarter.
Select's cash flow from operations grew to $136 million for the first nine months of the year, compared with $90 million for the same period last year.
Net income grew 16 percent to $23.6 million, or $0.44 a share, from $20.3 million, or $0.36 a share, last year. Sales increased 23 percent to $323 million, from $264 million a year earlier.
Analysts expected $0.40 a share on sales of $292.6 million.
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