LEXINGTON, Ky. ( TheStreet) -- Tempur-Pedic International ( TPX - Get Report) shares surged Friday after the mattress and pillow maker forecast strong first-quarter results and raised its full-year profit outlook.

Temper-Pedic said late Thursday it expects to earn a profit of 67 cents to 68 cents per share in its first fiscal quarter, and sees revenue growing 28% to $325 million. That forecast is far ahead of analysts' call for earnings of 58 cents per share on revenue of $289.1 million.

Pleased investors bid Tempur-Pedic shares 13.4% higher to $57.83 at midday Friday amid heavier-than-normal volume. More than 6.1 million shares changed hands halfway through the day's session, compared with their average daily volume of just 1.1 million.

"Despite a strong start in 2011, we believe the long-term earnings power of the business is well above current levels," noted William Blair analyst Jon Andersen.

"Enhancements to the company's product range and increased investment to consumer marketing are delivering market share gains to the Tempur-Pedic brand," he added.

The analyst had an outperform rating on Tempur-Pedic shares.

For the full year, Tempur-Pedic expects to earn between $2.80 and $2.95 per share on revenue of $1.31 billion to $1.36 billion, up from its prior estimate for a profit of $2.60 to $2.75 per share on revenue between $1.23 billion and $1.28 billion. Analysts expect the company to earn $2.71 per share on revenue of $1.26 billion.

Rival Sealy ( ZZ) posted a surprise quarterly loss in late March.

Sealy said investments in new products and marketing pressured its results last quarter. Losses from discontinued operations in Europe and Brazil also hit the company last quarter.

Tempur-Pedic also competes with Select Comfort ( SCSS).

Sealy shares gained 1.2% to $2.50 on Friday while Select Comfort jumped 4.9% to $12.96.

-- Written by Miriam Marcus Reimer in New York.

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