SGI Stock Forecast & Price Target

Somnigroup International Inc. continues to gain market share and is experiencing an improved industry backdrop, which supports a positive outlook for its financial performance. The company reported solid international sales growth of 8% on a constant current basis and anticipates notable improvements in margins and sales in the upcoming quarter, aided by strategic price increases and growing sales momentum from its Sealy brand. Additionally, the anticipated synergies from the Mattress Firm acquisition present meaningful margin drivers that could further enhance profitability moving forward.

Somnigroup International Inc has revised its earnings per share (EPS) guidance downward by 12%, setting the new range at $2.30-$2.65, which reflects a decrease from the previous forecast of $2.60-$3.00. Additionally, the company has reduced its full year sales guidance by 3.3% at the midpoint, translating to a $250 million decrease, bringing the anticipated revenue to a range of $7.3 billion to $7.5 billion, down from $7.5 billion to $7.8 billion. Furthermore, the company faces a significant profit headwind of $120 million due to tariff exposure on $750 million of cost of goods sold, indicating further financial strain.