Mattress Firm Holding Corp (NASDAQ:MFRM) has declined 18.74% since April 28, 2015 and is downtrending. The company reported $0.67 EPS for the quarter, missing the consensus estimate of $0.72 by $0.05. Mattress Firm Holding Corp’s revenue was up 61.2% compared to the same quarter past year.
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While I’m not personally eager to dive in, with shares now trading around 38 times trailing-12-month earnings, I also wouldn’t be surprised if the stock rewards patient, long-term investors willing to watch as the company continues to implement its growth strategies and improve its financial position. Mattress Firm also expects to get $40 million in cost savings annually by the third year after the deal closes. The Houston-based mattress retailer announced the $780 million deal for Sleepy’s yesterday and officials think it’s an important step to building their national store network. The stock is now up 5.14 on 12K shares. The stock was bought at an average price of $45.35 per share, with a total value of $226,750.00. The company is counting on Sleepy’s contributing earnings per share in the low-single digits in the first year, rising to double digits in the third year. The company earned $661.10 million during the quarter. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Finally, Piper Jaffray reaffirmed a hold rating on shares of Mattress Firm Holding Corp in a research note on Tuesday, September 15th.
Adam Blank, 44, Sleepy’s chief operating officer who will become president when the company becomes a subsidiary of Mattress Firm, said in an interview Tuesday that talks heated up “a couple months ago” as David Acker, chief executive and grandson of the founder, sought an exit.
Mattress Firm expects to fund the cash requirements of the closing of the acquisition with cash on hand and the proceeds from the issuance of senior secured debt. The Firm operates through two reportable divisions: retail activities and franchise operations.
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Mattress Firm Holding Corp (NASDAQ:MFRM) last released its quarterly earnings data on Friday, September 11th. The Company-operated stores, its e-commerce Website operations and multi-channel sales operations consisting primarily of special events comprise the Company’s retail operations segment.
