Tempur-pedic Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of bed-maker Tempur-Pedic (NYS: TPX) jumped as much as 11% today after the company reported solid earnings last night.

So what: Revenue grew 25% to $366.8 million, and earnings per share reached $0.84 in the fourth quarter, just topping estimates on both accounts. Guidance also topped estimates with 2012 revenue expected to be between $1.6 billion and $1.65 billion, and earnings between $3.80 and $3.95 per share.

Now what: The upbeat guidance is likely driving shares higher today more than the slight earnings beat. The company has now topped estimates for more than three straight years, always a good sign that a company is performing at the top of its game. Shares are trading at just 17.8 times the low end of 2012 estimates, a reasonable price considering the company's growth. I'm bullish even with today's jump and think this stock has further to run.

Interested in more info on Tempur-Pedic? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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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