UPDATE 2-Tempur-Pedic Q3 tops Street, ups FY view; shares jump

* Q3 EPS 34 cents vs est 26 cents

* Q3 sales 224.1 mln vs est $195.9 mln

* Ups 2009 EPS view to $1.00-$1.05

* Shares up 12 pct after the bell

(Recasts; updates share movement)

Oct 15 (Reuters) - Mattress maker Tempur-Pedic International Inc (TPX.N) posted better-than-expected quarterly results, helped partly by lower commodity costs and improved pricing, and raised its outlook for the full year, sending its shares up 12 percent.

Tempur-Pedic, like other mattress makers Sealy Corp (ZZ.N) and Select Comfort Corp (SCSS.O), has been struggling with softer sales in U.S. markets after cash-strapped shoppers cut down on purchases of big-ticket items.

The company, which sells mattresses and pillows under the Tempur and Tempur-Pedic brand names, earned $25.7 million, or 34 cents a share, compared with $24.1 million, or 32 cents a share, in the third quarter last year.

Revenue fell 11 percent to $224.1 million.

Analysts on average were looking for a profit of 26 cents a share, before items, on revenue of $195.9 million, according to Thomson Reuters I/B/E/S.

Gross margins rose to 47.6 percent in the quarter from 41.7 percent a year ago. Tempur-Pedic raised its 2009 profit forecast to between $1.00 and $1.05 a share and it now expects net sales to be between $790 million and $805 million.

In July, Tempur-Pedic had forecast earnings of between 70 cents and 90 cents a share, on net sales of $700 million to $740 million for the period.

Analysts were expecting the company to earn 87 cents a share, before items, on revenue of $738.4 million, for the full year.

Last month, rival Sealy reported a third-quarter profit that was in line with Wall Street expectations, helped by cost reductions and improved gross margins.

Tempur-Pedic shares rose 12 percent to $23.25 after the bell. They closed at $20.71 on the New York Stock Exchange. (Reporting by Vidya Lakshmi in Bangalore; Editing by Aradhana Aravindan)