Mattress Firm Holding Earnings: Here’s Why Investors Like These Results

Mattress Firm Holding Corp (NASDAQ:MFRM) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.55%.

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Mattress Firm Holding Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 52.38% to $0.3 in the quarter versus EPS of $0.63 in the year-earlier quarter.

Revenue: Decreased 0% to $258.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mattress Firm Holding Corp reported adjusted EPS income of $0.3 per share. By that measure, the company missed the mean analyst estimate of $0.32. It missed the average revenue estimate of $261.54 million.

Quoting Management: “We achieved significant growth in 2012, unprecedented in our industry, as we drove net sales by 43.1% to above the $1 billion mark and increased our store base by 45.0% to over 1,000 store units. We also delivered meaningful year-over-year increases across key financial metrics, including a 50.6% increase in Adjusted operating income and 6.1% comparable-store sales growth during our first full year as a public company,” remarked Steve Stagner, Mattress Firm’s president and chief executive officer. “Overall, fiscal 2012 was a record year for Mattress Firm; an impressive accomplishment in light of the challenges associated with adding 328 stores, including 242 stores through accretive acquisitions. Looking to 2013, with the integration of the acquired stores substantially complete, we expect to drive sales and operating margin expansion from the ongoing sales growth of acquired stores, which will be enhanced as we pass the anniversary dates of our 2012 acquisitions. We envision that this growth, combined with a third consecutive year of opening more than 100 organic new stores in line with the continued execution of our relative market share strategy of penetrating markets, will further strengthen and fortify our leadership positions. We are extremely excited about our potential for fiscal 2013 and believe we are well positioned to drive additional value for our shareholders as we move through the year.”

Key Stats (on next page)…

Revenue decreased 7.37% from $278.75 million in the previous quarter. EPS decreased 36.17% from $0.47 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.4 and has not changed. For the current year, the average estimate is a profit of $1.51, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]