LEXINGTON, Ky. (AP) -- Tempur-Pedic International Inc.'s recent acquisition of Sealy Corp. helped its first-quarter earnings beat market forecast. The mattress maker also issued better-than-expected full-year guidance and its shares rose in after-hours trading Thursday.
The Lexington, Ky., company closed in March on its $228.6 million acquisition of Sealy and plans to change its name to Tempur Sealy International Inc.
The deal comes amid increasing competition in the sector, as companies try to win over consumers still stung by the recession. It also blends two companies with varying mattress styles, Tempur-Pedic with its specialty products and Sealy with its more traditional mattresses, to better appeal to consumers.
Tempur-Pedic reported that it earned $12.5 million, or 20 cents per share, for the quarter. After adjusting for transaction costs, it earned 62 cents per share in the most recent quarter. That's compared with net income of $56.2 million, or 86 cents per share, last year.
The company's revenue increased to $390.1 million from $384.4 million on the inclusion of $46.7 million of Sealy sales for the period. Excluding Sealy, Tempur-Pedic net sales decreased nearly 11 percent to $343.4 million
Analysts were anticipating adjusted earnings of 61 cents share on revenue of $347.5 million.
Tempur CEO Mark Sarvary said the integration of Sealy is going smoothly and said the company expects growth for the balance of the year.
The company updated its 2013 forecast to incorporate Sealy. It expects to earn $2.75 per share on an adjusted basis. Analysts had forecast earnings of $2.70 per share.
Tempur-Pedic's shares increased 21 cents to $48.01 in after-hours trading. Its shares increased 64 cents to close regular trading at $47.80.