Latest news with #ScottThompson
Yahoo
4 days ago
- Business
- Yahoo
SGI Q1 Earnings Call: Revenue Miss, Guidance Cut, and Tariff Mitigation Plans Detailed
Bedding manufacturer Somnigroup (NYSE:SGI) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 34.9% year on year to $1.6 billion. Its non-GAAP EPS of $0.49 per share was 5.1% above analysts' consensus estimates. Is now the time to buy SGI? Find out in our full research report (it's free). Revenue: $1.6 billion (34.9% year-on-year growth) Adjusted EPS: $0.49 vs analyst estimates of $0.47 (5.1% beat) Adjusted Operating Income: $182.8 million vs analyst estimates of $185.4 million (11.4% margin, 1.4% miss) Management lowered its full-year Adjusted EPS guidance to $2.47 at the midpoint, a 11.6% decrease Operating Margin: 0.8%, down from 11.1% in the same quarter last year Market Capitalization: $13.6 billion Somnigroup's first quarter performance was shaped by the initial integration of Mattress Firm and the ongoing launch of new product lines, particularly the Sealy Posturepedic collection in North America. CEO Scott Thompson cited 'continued strong performance in our international business' and highlighted solid mid-single-digit sales growth in key markets, despite the impact of foreign exchange. Management also addressed weaker-than-expected U.S. consumer demand over the President's Day period and a challenging market backdrop. The company's operational focus included expanding distribution, accelerating private label initiatives, and streamlining logistics, all of which were intended to counteract industry headwinds and drive market share gains. Looking forward, Somnigroup's revised outlook reflects lowered expectations for the U.S. bedding market, with management now projecting a mid-single-digit industry decline for the year. CFO Bhaskar Rao attributed the guidance cut primarily to a 'rapid change in consumer confidence or sentiment in the U.S.,' describing it as volatile and policy-driven. The company plans to offset new tariff costs by combining supplier negotiations and price increases, which are set to take effect in the third quarter. Management emphasized upcoming marketing campaigns and the ongoing rollout of the Sealy collection as potential drivers for a modest second-half improvement, though they cautioned that overall industry demand is likely to remain subdued. Management discussed the integration of Mattress Firm, evolving market conditions, and the company's response to tariff developments as major themes impacting the quarter. International business momentum: The international segment, led by the Tempur brand, delivered mid-single-digit sales growth on a reported basis and high single digits in constant currency. Management highlighted the success of new Tempur products and an expanded price range that increased distribution opportunities and market reach. Sealy Posturepedic launch progress: The comprehensive rebranding and rollout of the Sealy Posturepedic collection in North America was a major operational focus. Early locations showed encouraging results, and the product is expected to be widely available by Memorial Day, supported by a national advertising campaign. Mattress Firm integration and synergies: Somnigroup completed the first phase of integrating Mattress Firm, focusing on leadership alignment, cost reduction, and logistics optimization. The company increased its near-term synergy target for 2025 to $15 million and is leveraging Mattress Firm's home delivery network for enhanced operational efficiency. Tariff mitigation strategy: Facing new tariffs, Somnigroup acted to reduce exposure through supplier changes and cost-sharing arrangements. The remaining impact will be addressed by a 2% price increase in North America, effective in the third quarter, with management expecting the combination of actions to fully offset the tariff cost. Advertising and merchandising changes: Somnigroup is doubling down on advertising scale, aiming for more effective campaigns by aligning messaging and leveraging buying power. Mattress Firm is also expanding its assortment through new vendor partnerships and increasing the share of Tempur Sealy-manufactured products, including an expanded private label offering. Somnigroup's updated outlook centers on cautious U.S. consumer sentiment, cost pressures from tariffs, and the pace of synergy realization from the Mattress Firm acquisition. Consumer confidence uncertainty: Management attributed the lower guidance to a double-digit decline in U.S. consumer confidence, which it sees as the main determinant of short-term demand. While this index is considered highly volatile and policy-sensitive, any recovery in sentiment could improve sales trends. Tariff pass-through and cost management: The company expects to manage increased tariff-related costs by shifting suppliers and raising prices. While these actions are intended to neutralize the margin impact, there is a lag in implementation, leading to a temporary headwind in the second quarter. New product and marketing initiatives: The ongoing rollout of the Sealy Posturepedic collection and the reimagined Mattress Firm advertising campaign are expected to drive incremental demand in the second half. Management is also focused on merchandising changes and expanded vendor partnerships to enhance store traffic and average order value. In the coming quarters, the StockStory team will be watching (1) the pace of synergy realization and operational improvements following the Mattress Firm acquisition, (2) the market response to new product launches and expanded vendor partnerships, and (3) the effectiveness of tariff mitigation and price increase strategies. Progress on these fronts, as well as shifts in U.S. consumer confidence, will be key indicators of future performance. Somnigroup currently trades at a forward P/E ratio of 22.7×. Should you double down or take your chips? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. 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Associated Press
5 days ago
- Business
- Associated Press
Counsel Press Serves Up Market Expansion with Legalex Acquisition
NEW YORK, June 5, 2025 /PRNewswire/ -- Counsel Press Inc. ('Counsel Press' or the 'Company'), the nation's largest provider of appellate services and a leader in technology-enabled litigation support, today announced its expansion into the service of process market through the acquisition of Legalex LLC . Headquartered in New York City, Legalex is a leading, technology-driven platform offering a comprehensive suite of litigation support services, including process serving, court e-filing, skip tracing, and investigative solutions — available nationwide across all 50 states. This acquisition represents a strategic milestone in Counsel Press' continued growth, establishing a scalable foundation for the Company's entry and expansion into the service of process sector. The Legalex platform can integrate seamlessly with law firms' existing case management tools or be deployed alongside Counsel Press' own Case Anywhere solution. The technology also positions the Company to support future enhancements and add-on services within the process serving space. 'Counsel Press is a natural fit for our technology platform that is purpose built to drive efficiency and outcomes for litigators,' said Mitchell Nathanson, Founder and President of Legalex. 'Together, we're delivering a true one-stop-shop solution for law firms nationwide.' By integrating Legalex, Counsel Press strengthens its value proposition of simplifying litigation workflows while maintaining compliance with the highly nuanced procedural rules of trial courts, appellate courts and alternative dispute resolution venues. 'This acquisition presents an exciting opportunity to enhance our e-filing and service of process capabilities through a scalable, tech-forward platform,' said Scott Thompson, CEO of Counsel Press. 'We're thrilled to welcome Legalex's clients into the Counsel Press family.' About Counsel Press Counsel Press is a technology-enabled legal services platform built to streamline litigation across the entire lifecycle of a case. Founded in 1938 and widely recognized as The Appellate Experts®, the Company has evolved into a national, multi-dimensional platform operating across three core business units: appellate services, trial services and service of process. Counsel Press provides end-to-end litigation support, including appellate brief preparation, filing, and service; trial court e-filing and eService; process serving; skip tracing; legal research and writing; and litigation workflow and case management solutions. With a focus on operational precision and technology-driven efficiency, Counsel Press enables litigators to navigate complex legal procedures with greater speed, clarity and confidence. Learn more at . View original content to download multimedia: SOURCE Counsel Press Inc.
Edinburgh Reporter
19-05-2025
- Automotive
- Edinburgh Reporter
Cricket Scotland and Toyota agree a deal
Cricket Scotland and Toyota have announced a new, multi-year partnership which will see the car manufacturer become Official Automotive Partner to the sport's governing body. In its new role Toyota commits to supporting the men's and women's national teams alongside investing in initiatives to help foster the growth of grassroots participation across Scotland. The deal comes ahead of the Scotland men's national team featuring in two home series against Netherlands and Nepal in June, followed by the ICC Men's T20 World Cup Qualifier in July. A key focus element will be promoting grass roots participation through 'All Stars Cricket' which is designed to introduce five to eight-year-old children to the sport. This investment will see Toyota fund 200 free bursary places each yea focused on growing state school access to the All-Stars programme, as well as supporting children at Additional Support Needs centres, making the game more accessible. In addition to the bursaries Toyota's dealerships will play a supporting role in growing All Stars Cricket within local communities, encouraging sign-ups to the programme. Toyota are also preparing to launch its 'Good For Cricket' prize draw with an aim of helping clubs raise £500,000 this year for vital equipment and resources, contributing with a bespoke platform and marketing materials plus a prize pool in year one valued at more than £200,000 to support their fundraising efforts. The draw adapts a model successfully deployed in Australia where the Toyota 'Good For Cricket' initiative has brought in the equivalent of more than £5.6 million over the past 12 years. Clubs can sign up to take part in the prize draw free of charge and will be allocated digital tickets for supporters to purchase. Each ticket sold will give the holder the chance to win from more than 50 prizes on offer, including three brand new Toyota vehicles. Participating clubs will receive all the proceeds from the tickets they sell. This partnership comes as Toyota also announces a new, multi-year partnership with the England and Wales Cricket Board (ECB) and Cricket Ireland. Trudy Lindblade Chief Executive of Cricket Scotland said: 'It is extremely important and hugely exciting for us to have the opportunity to work with a globally recognised brand that is keen to help us drive the sport forward here in Scotland. Scott Thompson, President and Managing Director at Toyota said: 'We can help support and inspire both the current and next generation of players, volunteers and fans who make cricket happen.' Like this: Like Related
Yahoo
08-05-2025
- Business
- Yahoo
Somnigroup (NYSE:SGI) Misses Q1 Sales Targets, Stock Drops
Bedding manufacturer Somnigroup (NYSE:SGI) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 34.9% year on year to $1.60 billion. Its non-GAAP profit of $0.49 per share was 5.1% above analysts' consensus estimates. Is now the time to buy Somnigroup? Find out in our full research report. Revenue: $1.60 billion vs analyst estimates of $1.63 billion (34.9% year-on-year growth, 1.8% miss) Adjusted EPS: $0.49 vs analyst estimates of $0.47 (5.1% beat) Adjusted EBITDA: $247.9 million vs analyst estimates of $255.6 million (15.4% margin, 3% miss) Management lowered its full-year Adjusted EPS guidance to $2.47 at the midpoint, a 11.6% decrease Operating Margin: 0.8%, down from 11.1% in the same quarter last year Free Cash Flow Margin: 5.1%, down from 8.3% in the same quarter last year Market Capitalization: $12.64 billion Company Chairman and CEO Scott Thompson commented, "Our results this quarter both reflect the transformational acquisition of Mattress Firm and highlight our ability to navigate a weak global market. All of our business units, domestically and internationally, successfully made progress on their growth opportunities as we leverage the core strengths of our business, including scale, operational flexibility and manufacturing capabilities. I continue to be impressed by our people, all around the world, as they focus on execution and taking care of our customers to deliver share gains and efficient cost management across the Somnigroup enterprise. Everyone in the organization has stepped up to quickly advance our near and longer term initiatives to continue delivering value to shareholders." Established through the merger of Tempur-Pedic and Sealy in 2012, Somnigroup (NYSE:SGI) is a bedding manufacturer known for its innovative memory foam mattresses and sleep products A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Somnigroup grew its sales at a 10.6% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the consumer discretionary sector, which enjoys a number of secular tailwinds. We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Somnigroup's recent performance shows its demand has slowed as its annualized revenue growth of 4.6% over the last two years was below its five-year trend. We can better understand the company's revenue dynamics by analyzing its most important segments, Wholesale and Direct, which are 43.5% and 56.5% of revenue. Over the last two years, Somnigroup's Wholesale revenue (sales to retailers) averaged 3.4% year-on-year declines. On the other hand, its Direct revenue (sales made directly to consumers) averaged 29.2% growth. This quarter, Somnigroup pulled off a wonderful 34.9% year-on-year revenue growth rate, but its $1.60 billion of revenue fell short of Wall Street's rosy estimates. Looking ahead, sell-side analysts expect revenue to grow 48.8% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and implies its newer products and services will spur better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Somnigroup's operating margin has shrunk over the last 12 months, but it still averaged 10.8% over the last two years, decent for a consumer discretionary business. This shows it generally does a decent job managing its expenses. This quarter, Somnigroup's breakeven margin was down 10.2 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Somnigroup's EPS grew at a remarkable 16.2% compounded annual growth rate over the last five years, higher than its 10.6% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't expand. In Q1, Somnigroup reported EPS at $0.49, down from $0.50 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 5.1%. Over the next 12 months, Wall Street expects Somnigroup's full-year EPS of $2.54 to grow 13%. It was encouraging to see Somnigroup beat analysts' EPS expectations this quarter. On the other hand, its full-year EPS guidance missed significantly and its revenue fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 5.9% to $57.03 immediately following the results. Somnigroup didn't show it's best hand this quarter, but does that create an opportunity to buy the stock right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-03-2025
- Health
- Yahoo
MultiCare's MyChart, other systems were out of commission Monday. Here's what happened
Tacoma-based MultiCare health system's operations are back to normal following a network outage. MultiCare media representative Scott Thompson, in response to questions from The News Tribune, said via email that all systems 'were back up and running' as of 7:30 p.m. Monday evening. The initial incident occurred in the early-morning hours Monday. Thompson explained that the issue 'stemmed from rain that filled a power vault at the Mary Bridge hospital construction site. A conduit allowed water to collect in one of our data centers, which shorted out an electrical switch and left hardware at risk due to the water.' A new Mary Bridge Children's Hospital is under construction. The new hospital will include a new inpatient hospital tower, ambulatory building with specialty clinics and urgent-care services, and new parking structures. The site has a projected completion date of early next year, according to the project's online site. Monday's outage reportedly affected the health system's electronic health records (MyChart) and other online networks. 'The computer hardware was tended to and the switch replaced,' Thompson added, with services restored by Monday evening. In February, a separate electrical mishap affected MultiCare Tacoma General Hospital and Mary Bridge Children's Hospital for several days. In that instance, they were reduced to generator power after a water leak in a piece of medical equipment at Tacoma General short-circuited an electrical switch feeding Phillips Pavilion at the hospital, 315 MLK Jr. Way. Repairs were further delayed by a small fire that later broke out in an electrical vault. Full power was restored a few days later. Previous reporting by The News Tribune contributed to this report.
