Somnigroup Stock Surges 14.64% on Q3 Earnings Beat, Raised Guidance

The share price rose to its highest level so far this month, with an intraday gain of 2.88% on Nov. 8. The stock has climbed 14.64% over two days, extending a two-day rally that pushed it to a 14-month peak. The surge follows Somnigroup’s third-quarter earnings report, which exceeded expectations and included a raised full-year guidance.

Strong financial results drove the stock’s performance, with revenue surging 63.3% year-over-year to $2.12 billion and adjusted earnings per share hitting $0.95, surpassing forecasts. The company attributed the outperformance to accelerated growth in direct-to-consumer sales, particularly through its Mattress Firm channel, which saw a 334.7% revenue increase. International direct sales also rose 11.9% year-over-year to $202.8 million, offsetting declines in North America’s wholesale and direct segments.

Investor optimism was further bolstered by a revised full-year adjusted EPS guidance to $2.68 and the announcement of a $0.15 per share dividend. Analysts highlighted the stock’s ability to convert short-term momentum into long-term value, with upgraded ratings and fair value estimates reflecting confidence in Somnigroup’s strategic shifts toward high-margin channels. While risks such as input cost pressures and regional volatility persist, the company’s focus on operational efficiencies and acquisition synergies has reinforced its growth trajectory, positioning it as a key player in the home furnishings sector.

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