SGI Stock Forecast & Price Target

Somnigroup International Inc. is successfully gaining market share while benefiting from an improving industry backdrop, reflecting its strong position within the bedding sector. The company's international sales have demonstrated solid growth, reporting an 8% increase on a constant currency basis, further indicating its global expansion capabilities. Anticipated margin improvements are expected in the upcoming quarters due to the resolution of prior headwinds and strategic drivers such as a planned 2% price increase and enhanced sales momentum from the Sealy brand.

Somnigroup International Inc has issued a negative revision to its earnings per share (EPS) guidance, lowering the midpoint estimate by 12% to a range of $2.30 to $2.65, compared to a previous range of $2.60 to $3.00. Additionally, the company has decreased its full-year sales guidance by 3.3% at the midpoint, reflecting a reduction of $250 million, bringing the forecast down to $7.3 billion to $7.5 billion from a prior range of $7.5 billion to $7.8 billion. The company faces significant profit headwinds, with $750 million in cost of goods sold (COGS) exposed to tariffs, creating an anticipated $120 million impact on profitability before any mitigation strategies are implemented.