* Third-quarter EPS $0.46 vs est $0.40
* Third-quarter sales $246.8 mln vs est $246.6 mln
* Raises full-year profit outlook
* Analyst says outlook could have been better
* Shares fall 3 pct aftermarket
Oct 17 Specialty mattress maker Select Comfort
Corp reported higher-than-expected quarterly earnings
as more customers took to its new products, prompting the
retailer to raise its 2012 profit outlook for the second time
Shares of the Minneapolis, Minnesota-based company fell 3
percent after the bell as investors were looking for a
significantly higher upside to full-year profit.
Select Comfort raised its 2012 profit outlook to between
$1.51 and $1.53 per share from the $1.41 to $1.47 per share
range it forecast earlier.
"Investors usually focus on guidance and it was very good
guidance, but it was not significantly above expectations," said
Keith Hughes, an analyst at Suntrust Robinson Humphrey.
Analysts on average expect a full-year profit of $1.47 per
share, according to Thomson Reuters I/B/E/S.
"The company had very high expectations, which they've met,
... but it'll probably take a greater beat to drive the stock
much higher than it is currently," Hughes said.
The company, which sells mattresses at prices ranging from
$649 to upwards of $5149, has been innovating its product line
and increasing its store count to gain share from rivals such as
Tempur-Pedic International Inc and Sealy Corp.
Chief Executive Shelly Ibach said she would continue
increasing investments to build the company's brand name and
develop new products within its 'Sleep Number' beds and bedding
line, in the fourth quarter.
Ibach said the company will launch a new advertising
campaign for the upcoming holiday season and open 14 to 18 new
Same-store sales at company-controlled stores rose 21
percent in the third quarter, as customers lapped up its new
range of Sleep Number Memory Foam and Sleep Number FlexFit
Adjustable Base series, the company said.
Select Comfort which has trumped Wall Street's quarterly
profit estimates for seven quarters in a row, reported a net
income of $26.2 million, or 46 cents per share for the third
quarter, compared with $17.2 million, or 31 cents per share, a
year earlier. Analysts expected earnings of 40 cents per share.
Revenue at the company rose 24 percent to $246.8 million,
marginally ahead of Wall Street expectations of $246.6 million.
Shares of Select Comfort, which has a market capitalization
of about $1.84 billion, closed at $32.63 on Wednesday on the