Shares of Tempur Sealy Int'l (TPX) - Get Tempur Sealy International Inc Report were soaring 7.49% to $49.50 in pre-market trading on Thursday after the mattress company reported better-than-expected earnings and revenue for the fourth quarter.
Before the opening bell, the Lexington, KY-based company posted adjusted earnings of $1.18 per share, surpassing analysts' estimates of $1.13 per share. Revenue edged up 0.3% to $769.5 million year-over-year and was above the FactSet consensus of $766.4 million.
"Overall the worldwide markets for our products are solid and the team remains focused on our long-term initiatives," CEO Scott Thompson said in a statement.
During the quarter, North American net sales rose 1.9% to $623.4 million from last year. But international net sales fell 6.2% to $146.1 million year-over-year.
For fiscal 2017, Tempur sees adjusted EBITDA between $400 million and $450 million.
The company also increased its share buyback program by an additional $200 million. Since the program was announced last year, Tempur has repurchased about 9.4 million shares for a total cost of roughly $573 million.
Last month, Tempur terminated contracts with mattress retailer Mattress Firm after not agreeing to changes, which raised concerns among analysts. In 2016, Mattress Firm accounted for about 21% of Tempur's global sales. Mattress Firm was the company's largest customer.