Mattress maker Tempur Sealy International Inc's (TPX.N) third-quarter results comfortably beat Wall Street estimates, boosted by a revival in North American sales.
Tempur Sealy shares were up more than 13 percent in extended trading on Wednesday.
The company had slashed its full-year profit forecast in July as it battled weak sales of its high-end Tempur Brand in North America.
"The steps we have taken to improve Tempur North America's performance showed progress and led to a slight sales increase during the quarter," Chief Executive Mark Sarvary said.
However, international results were slightly below plan due to continued weakness in Europe, Sarvary added.
The company reported a profit of $40.2 million, or 65 cents per share, compared with a loss of $2 million, 3 cents per share, last year.
Excluding items, the company earned 73 cents per share, while analysts had forecast 68 cents per share.
Total sales more than doubled to $735.5 million, primarily due to the inclusion of $389.9 million of Sealy's sales. Tempur completed the purchase of Sealy in March.
Tempur's North America net sales, which has been a drag on the company's results, rose marginally to $242.4 million in the third quarter of 2013.
Analysts on average had forecast revenue of $709.9 million, according to Thomson Reuters I/B/E/S.
The inclusion of the lower-margin Sealy sales pressured gross margins, which fell to 40.6 percent from 49.2 percent last year.
Shares of the Lexington, Kentucky-based company were up at $45.75 after market. They had closed at $40.11 on Wednesday on the New York Stock Exchange.
(Reporting by Chris Peters in Bangalore; Editing by Joyjeet Das)