Tempur-Pedic International Beats Estimates Yet Again

Tempur-Pedic International (NYS: TPX) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tempur-Pedic International met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly, and earnings per share expanded significantly.

Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
Tempur-Pedic International reported revenue of $367 million. The 11 analysts polled by S&P Capital IQ expected revenue of $365 million. Sales were 25% higher than the prior-year quarter's $293 million


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.84. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.82 per share. GAAP EPS of $0.84 for Q4 were 28% higher than the prior-year quarter's $0.66 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 52.1%, 20 basis points better than the prior-year quarter. Operating margin was 23.4%, 110 basis points worse than the prior-year quarter. Net margin was 15.4%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $377 million. On the bottom line, the average EPS estimate is $0.85.

Next year's average estimate for revenue is $1.6 billion. The average EPS estimate is $3.82.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 440 members out of 493 rating the stock outperform, and 53 members rating it underperform. Among 187 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 176 give Tempur-Pedic International a green thumbs-up, and 11 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 $75.64.

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

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs 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.