Somnigroup International (NYSE:SGI) Releases Earnings Results, Misses Expectations By $0.02 EPS

Somnigroup International (NYSE:SGI) released its quarterly earnings data on Monday. The company reported $1.04 EPS for the quarter, missing the consensus estimate of $1.06 by ($0.02), FiscalAI reports. The business had revenue of $2.35 billion during the quarter. Somnigroup International had a return on equity of 19.32% and a net margin of 7.00%. The firm’s quarterly revenue was up 10.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.95 EPS. Somnigroup International updated its FY 2026 guidance to 2.850-2.950 EPS.

Here are the key takeaways from Somnigroup International’s conference call:

• Somnigroup posted record third-quarter sales of $2.4 billion, adjusted EBITDA of $448 million, and adjusted EPS of $1.04, up 10% year over year, but results were below expectations. Full-year adjusted EPS guidance is $2.85–$2.95, with management expecting the global bedding market to decline at a mid-single-digit rate in the second half.
• A troubled Dreams ERP rollout drove an unexpected sales decline of about 35%; management estimates a roughly $50 million sales and $25 million adjusted EBITDA impact versus the prior year. The company expects the disruption to be resolved in early 2027, while acknowledging recovery remains subject to market conditions.
• The Leggett & Platt acquisition adds supply-chain integration and manufacturing scale; the business delivered solid results during its post-close period. Somnigroup cited about $125 million of incremental adjusted EBITDA synergies for 2027 and beyond, alongside $290 million of quarterly free cash flow and leverage of 2.7 times.
• Management said the Stearns & Foster launch is selling well where placed and has secured an estimated 6% in incremental retail slots from competitors. Upcoming launches include a premium Heritage collection and a next-generation Tempur-Pedic Breeze, which executives expect to support brand differentiation and higher price points.
• Mattress Firm’s third-quarter same-store sales fell 2%, with online sales weakness weighing on results; management said online performance has improved after shifting some advertising back to the channel. The company plans to begin measured store expansion in 2027, targeting more than 2,500 locations over time and estimating an approximately 18-month enterprise-wide payback per store.

Somnigroup International Trading Up 3.7%

Shares of Somnigroup International stock opened at $66.53 on Tuesday. The company has a market cap of $14.00 billion, a price-to-earnings ratio of 26.61, a PEG ratio of 1.14 and a beta of 1.30. The company has a current ratio of 0.75, a quick ratio of 0.37 and a debt-to-equity ratio of 1.33. The company’s 50-day moving average price is $64.48 and its 200-day moving average price is $73.08. Somnigroup International has a 12-month low of $60.08 and a 12-month high of $98.56.

Somnigroup International Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 7th. Shareholders of record on Monday, November 23rd will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Monday, November 23rd. Somnigroup International’s dividend payout ratio (DPR) is currently 27.20%.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on SGI shares. Stephens upgraded shares of Somnigroup International from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $66.00 to $80.00 in a report on Monday, September 14th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Somnigroup International in a research report on Friday, August 21st. Morgan Stanley assumed coverage on Somnigroup International in a report on Monday, July 27th. They set an “overweight” rating and a $95.00 price target for the company. UBS Group upped their target price on shares of Somnigroup International from $94.00 to $102.00 and gave the company a “buy” rating in a research report on Thursday, September 3rd. Finally, Wall Street Zen raised shares of Somnigroup International from a “sell” rating to a “hold” rating in a research note on Saturday, September 5th. Nine analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $95.56.

Insider Buying and Selling at Somnigroup International

In other news, CEO Scott Thompson purchased 30,000 shares of the business’s stock in a transaction on Thursday, August 27th. The shares were acquired at an average price of $62.84 per share, with a total value of $1,885,200.00. Following the acquisition, the chief executive officer directly owned 4,123,634 shares in the company, valued at approximately $259,129,160.56. The trade was a 0.73% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 3.99% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in shares of Somnigroup International during the second quarter valued at about $1,507,604,000. Linonia Partnership LP purchased a new position in shares of Somnigroup International in the second quarter worth about $519,372,000. Allspring Global Investments Holdings LLC grew its position in Somnigroup International by 15.6% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 3,843,602 shares of the company’s stock worth $241,186,000 after purchasing an additional 517,542 shares during the period. Bank of America Corp DE purchased a new stake in Somnigroup International during the second quarter worth $204,632,000. Finally, Avala Global LP acquired a new position in Somnigroup International during the 2nd quarter worth about $107,831,000. 99.86% of the stock is owned by hedge funds and other institutional investors.

Key Somnigroup International News

Here are the key news stories impacting Somnigroup International this week:

• Positive Sentiment: Third-quarter net sales rose 11% to about $2.4 billion, adjusted EPS increased 9.5% to $1.04 year over year, and cash flow from operations was a strong $349 million. Somnigroup Q3 results
• Positive Sentiment: The board declared a quarterly dividend of $0.17 per share, equivalent to $0.68 annualized and a yield of about 1%. Dividend announcement
• Negative Sentiment: Somnigroup set 2026 EPS guidance at $2.85–$2.95, below analyst consensus near $3.10–$3.11. This outlook gap may overshadow the year-over-year growth in quarterly sales and adjusted EPS. Somnigroup Q3 results and guidance
• Negative Sentiment: Adjusted Q3 EPS of $1.04 narrowly missed the $1.06 analyst estimate. GAAP EPS was $0.74, down 10.8% year over year. Q3 earnings estimate comparison

About Somnigroup International

Somnigroup International, Inc is a bedding company that designs, manufactures, distributes and sells mattresses and related sleep products. Its offerings include adjustable bases, pillows and other bedding accessories, marketed under brands such as Tempur-Pedic, Sealy and Stearns & Foster.

The company also operates Mattress Firm, a mattress retailer with stores across the United States. Through its brands, retail business and other sales channels, Somnigroup serves customers in the U.S.