Mattress Firm Tops Q3 Expectations

reported better-than-expected results for the third quarter on Monday. The Houston, Texas-based company reported quarterly net income of $23.9 million, or $0.67 per share, compared to $15.6 million, or $0.45 per share, in the year-ago period. Excluding one-time items, the company's adjusted earnings came in at $0.82 per share. Its revenue surged 50.7 percent year-over-year to $699.5 million. However, analysts were expecting earnings of $0.81 per share on revenue of $660.6 million. Its comparable-store sales gained 3.8 percent for the quarter. At the end of the third fiscal quarter, Mattress Firm had $10.3 million in cash and cash equivalents. "We are pleased with our third quarter results, with over 50% net sales growth and a 3.8% comparable-store sales increase, representing our ninth consecutive quarter of positive same store sales," stated Steve Stagner, chief executive officer. "Our third quarter Adjusted EPS grew 17% from the prior year, as we continue to execute on our plan and integrate the nine acquisitions, totaling over 600 stores, that we completed in fiscal 2014. Our Sleep Train business continues to perform extremely well with strong sales growth as we convert the Mattress Discounters stores to the Sleep Train banner. With our recently streamlined organizational structure and initiatives in place, we believe we are well-positioned to execute on our growth strategies and capitalize on our relative market share strategy." For the full year, Mattress Firm projects earnings of $2.33 to $2.42 per share, and revenue of $2.53 billion to $2.55 billion. Mattress Firm shares gained 1.06 percent to $51.57 in pre-market trading.