Sealy, EXFO: After-Hours Trading

NEW YORK ( TheStreet) -- Shares of Sealy Corp. ( ZZ) jumped on light volume in late trades on Tuesday after the mattress maker reported a surprise profit in its fiscal first quarter.

The Trinity, N.C.-based company posted net income from continuing operations of $1.6 million, or a penny per share, for the three months ended Feb. 26 on sales of $312.3 million. The average estimate of analysts polled by Thomson Reuters was for a loss of 2 cents a share in the quarter on sales of $301.8 million.

Sealy cited strength in gross margin for its U.S. business as a driver for the better than expected performance. The company said U.S. gross margin rose 0.8 percentage points to 38.7% because of better pricing and a favorable shift in product mix stemming from the successful launch of its higher priced Next Generation Stearns & Foster products.

The stock was last quoted at $2.17, up 15.4%, on volume of more than 33,000, according to Nasdaq.com. Based on Tuesday's regular-session close at $1.88, the shares were already up more than 10% so far in 2012.

"We delivered positive financial and operational performance in the first quarter of 2012," said Larry Rogers, the company's president and CEO, in a statement. "Our positive sales, gross margin and Adjusted EBITDA performance for the quarter were driven by the success of our Next Generation Stearns & Foster line, which began shipping in Q4, 2011."

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose 21.2% year-over-year to $36.4 million.

"As we look forward in 2012, we are focused on driving continued performance of the new Stearns & Foster line at retail, and initiating the rollouts of the new, value priced Sealy Promotional Line, and the premium priced Optimum by Sealy Posturepedic line," Rogers added. "These two lines were introduced at the January 2012 Las Vegas Furniture Market and will begin shipping in the second quarter of 2012."

Check out TheStreet's quote page for Sealy for year-to-date share performance, analyst ratings, earnings estimates and much more.

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EXFO Inc.

EXFO shares took a hit in the extended session on Tuesday after the Canadian provider of wireless and wireline network testing services reported a year-over-year decline in quarterly sales and a sequential drop in bookings.

The company said it earned $1.04 million, or 2 cents a share, in its fiscal second quarter ended Feb. 29 on sales of $66.9 million. That performance was below its year-ago net income of $1.72 million, or 3 cents a share, on sales of $72 million. Wall Street's consensus view was for a profit of 4 cents a share in the latest quarter.

EXFO said bookings totaled $60.6 million for the three-month period, up slightly from $57.6 million in the same period a year earlier, but down from $71.4 million in its fiscal first quarter.

The stock was last quoted at $6.95, down 4.5%, on volume just shy of 15,000, according to Nasdaq.com.

"EXFO performed well in the second quarter given typical seasonality, difficult European economic environment, near absence of year-end capital spending and some later approvals of 2012 spending budgets," said Germain Lamonde, the company's chairman, president and CEO, in a statement. "In the second half of our fiscal year, which is typically our strongest, we expect to benefit from major product launches, as well as continued market penetration with our wireless, 40G/100G and other Protocol solutions, to complete the year with at least single-digit sales growth."

For its fiscal third quarter, EXFO forecast earnings of 1 to 5 cents a share on sales ranging from $68 million to $73 million. The company said the third-quarter outlook reflects costs totaling 4 cents a share related to after-tax amortization of intangible assets and stock-based compensation.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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