Mattress Firm Holding Earnings: Here’s Why the Stock is Up Now

Mattress Firm Holding Corp (NASDAQ:MFRM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.50%.

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Mattress Firm Holding Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.58% to $0.38 in the quarter versus EPS of $0.31 in the year-earlier quarter.

Revenue: Rose 30.79% to $276 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mattress Firm Holding Corp reported adjusted EPS income of $0.38 per share. By that measure, the company beat the mean analyst estimate of $0.36. It beat the average revenue estimate of $274.39 million.

Quoting Management: “As the leading bedding specialty retailer in the country, we continued to achieve strong results in the first quarter, evidenced by our 31.5% revenue growth over the prior year, despite the challenging industry consumer traffic and average unit price trends that we previously referenced,” stated Steve Stagner, Mattress Firm’s president and chief executive officer. “With the opening of 46 new stores during the first quarter, we are well on our way to reaching our goal of opening more than 100 new stores for the third consecutive year and growing our company-operated store base above 1,100 during 2013. We are pleased with the ongoing sales and operating margin growth in the acquired Mattress Giant stores and that comparable-store sales growth turned positive in May now that those stores are included in our comparable-store sales results. As we look ahead, we are excited by the new and innovative products now on our floors supported with national advertising and anticipate consistent sales and profitability growth over the remainder of 2013.”

Key Stats (on next page)…

Revenue increased 6.31% from $259.62 million in the previous quarter. EPS increased 26.67% from $0.30 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.49 to a profit $0.52. For the current year, the average estimate is a profit of $1.96, 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] wallstcheatsheet.com)

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