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What: Shares of mattress specialist Select Comfort (Nasdaq: SCSS ) sprung 30% higher today after its quarterly results and full-year forecast easily topped Wall Street expectations.
So what: Driven by a 22% pop in revenue, Select Comfort posted a first-quarter profit of $16.6 million, or $0.30 per share, versus the average analyst estimate of just $0.19 per share. The results mark the ninth-straight market-beating quarter for Select Comfort, which is benefitting greatly from rebounding demand across the industry.
Now what: "We expect our efforts to generate strong earnings growth over the balance of the year," CEO Bill McLaughlin said. So much so, in fact, that Select Comfort upped its profit outlook for 2011 to $0.85 to $0.93 per share, well above the $0.72 per share forecast by Wall Street. Earlier this month, rival Tempur-Pedic (NYSE: TPX ) also popped on a bouncy outlook, so the mattress space is beginning to look like a comfortable place to be.
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