Tempur-Pedic International Beats on EPS but GAAP Results Lag
Tempur-Pedic International (NYS: TPX) reported earnings on July 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Tempur-Pedic International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Tempur-Pedic International logged revenue of $329.5 million. The 10 analysts polled by S&P Capital IQ hoped for revenue of $326.9 million on the same basis. GAAP reported sales were 3.7% lower than the prior-year quarter's $342.2 million.
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 $0.45. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.45 for Q2 were 41% lower than the prior-year quarter's $0.76 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 50.7%, 220 basis points worse than the prior-year quarter. Operating margin was 14.4%, 980 basis points worse than the prior-year quarter. Net margin was 8.8%, 670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $362.5 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $1.43 billion. The average EPS estimate is $2.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 651 members out of 704 rating the stock outperform, and 53 members rating it underperform. Among 191 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 give Tempur-Pedic International a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tempur-Pedic International is hold, with an average price target of $30.67.
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The article Tempur-Pedic International Beats on EPS but GAAP Results Lag 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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