Somnigroup International (NYSE:SGI) Announces Earnings Results

Somnigroup International (NYSE:SGI) announced its quarterly earnings data on Monday. The company reported $1.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.06 by ($0.02), FiscalAI reports. Somnigroup International had a net margin of 6.62% and a return on equity of 17.84%. The company had revenue of $2.35 billion for the quarter. During the same quarter in the prior year, the business earned $0.95 earnings per share. The company’s revenue was up 10.8% on a year-over-year basis. 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 Down 0.7%

Somnigroup International stock traded down $0.44 during midday trading on Wednesday, reaching $62.34. The stock had a trading volume of 866,025 shares, compared to its average volume of 2,819,760. The company has a quick ratio of 0.37, a current ratio of 1.23 and a debt-to-equity ratio of 1.14. The company has a fifty day moving average of $64.44 and a 200 day moving average of $72.92. Somnigroup International has a 52-week low of $60.08 and a 52-week high of $98.56. The firm has a market cap of $13.12 billion, a price-to-earnings ratio of 25.84, a price-to-earnings-growth ratio of 1.09 and a beta of 1.30.

Somnigroup International Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, December 7th. Investors of record on Monday, November 23rd will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.1%. The ex-dividend date is Monday, November 23rd. Somnigroup International’s dividend payout ratio is presently 27.20%.

Analyst Ratings Changes

A number of research analysts have commented on SGI shares. Stephens raised Somnigroup International from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $66.00 to $80.00 in a research report on Monday, September 14th. Truist Financial dropped their price target on Somnigroup International from $115.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Morgan Stanley decreased their target price on shares of Somnigroup International from $95.00 to $90.00 and set an “overweight” rating on the stock in a research note on Tuesday. Zacks Research downgraded Somnigroup International from a “strong-buy” rating to a “hold” rating in a research report on Thursday, November 5th. Finally, UBS Group reduced their price target on shares of Somnigroup International from $102.00 to $87.00 and set a “buy” rating on the stock in a report on Tuesday. Nine investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $93.33.

Insider Buying and Selling at Somnigroup International

In related news, CEO Scott Thompson bought 30,000 shares of the stock in a transaction dated Thursday, August 27th. The stock was purchased at an average cost of $62.84 per share, with a total value of $1,885,200.00. Following the completion of the purchase, the chief executive officer owned 4,123,634 shares of the company’s stock, valued at $259,129,160.56. This trade represents a 0.73% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 3.99% of the company’s stock.

Institutional Trading of Somnigroup International

A number of large investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of Somnigroup International in 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 $519,372,000. Boston Partners lifted its position in Somnigroup International by 13.8% during the 3rd quarter. Boston Partners now owns 5,069,543 shares of the company’s stock worth $314,878,000 after acquiring an additional 616,440 shares during the period. Allspring Global Investments Holdings LLC boosted its position in Somnigroup International by 15.6% in the third quarter. Allspring Global Investments Holdings LLC now owns 3,843,602 shares of the company’s stock valued at $241,186,000 after buying an additional 517,542 shares during the last quarter. Finally, Bank of America Corp DE acquired a new stake in shares of Somnigroup International in the second quarter worth $204,632,000. Hedge funds and other institutional investors own 99.86% of the company’s stock.

Key Stories Impacting Somnigroup International

Investors following SGI have been watching these stories:

• Positive Sentiment: Somnigroup declared a quarterly dividend of $0.17 per share, or $0.68 annualized, representing a yield of about 1%. Dividend and 12-month low report
• Neutral Sentiment: UBS, Morgan Stanley and KeyCorp lowered their price targets, but maintained Buy or Overweight ratings. Their new targets range from $87 to $100, signaling continued potential upside in their view, while the cuts reflect a more cautious reassessment. UBS price target update
• Negative Sentiment: Somnigroup set 2026 EPS guidance at $2.85–$2.95, below the roughly $3.11 analyst consensus. The reduced outlook adds to concerns about near-term earnings growth and helps explain the stock’s weakness and 12-month low. Q3 results and guidance

Somnigroup International Company Profile

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. and international markets.