Tempur-Pedic International Beats on Both Top and Bottom Lines
Tempur-Pedic International (NYS: TPX) reported earnings on May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Tempur-Pedic International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
Tempur-Pedic International booked revenue of $390.1 million. The four analysts polled by S&P Capital IQ expected revenue of $381.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.62. The eight earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. Non-GAAP EPS of $0.62 for Q1 were 28% lower than the prior-year quarter's $0.86 per share. GAAP EPS of $0.20 for Q1 were 77% lower than the prior-year quarter's $0.86 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.3%, 530 basis points worse than the prior-year quarter. Operating margin was 11.4%, much worse than the prior-year quarter. Net margin was 3.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $669.3 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $2.51 billion. The average EPS estimate is $2.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 608 members out of 659 rating the stock outperform, and 51 members rating it underperform. Among 196 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 188 give Tempur-Pedic International a green thumbs-up, and eight 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 $49.00.
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The article Tempur-Pedic International Beats on Both Top and Bottom Lines originally appeared on Fool.com.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. The Motley Fool owns shares of Tempur-Pedic International. 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.
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