Tempur-Pedic International's Earnings Beat Last Year's by 26%

Before you go, we thought you'd like these...
Before you go close icon

Tempur-Pedic International (NYS: TPX) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Tempur-Pedic International met expectations on revenue and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.


Gross margin increased, operating margin contracted, and net margin dropped.

Revenue details
Tempur-Pedic International chalked up revenue of $384.4 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $383.6 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $325.8 million.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.86. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.84 per share. GAAP EPS of $0.86 for Q1 were 26% higher than the prior-year quarter's $0.68 per share.

anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 53.6%, 130 basis points better than the prior-year quarter. Operating margin was 22.4%, 70 basis points worse than the prior-year quarter. Net margin was 14.6%, 20 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $399.1 million. On the bottom line, the average EPS estimate is $0.94.

Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $4.00.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 438 members out of 495 rating the stock outperform, and 57 members rating it underperform. Among 189 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 176 give Tempur-Pedic International a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tempur-Pedic International is outperform, with an average price target of $91.70.

  • Add Tempur-Pedic International to My Watchlist.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners