Tempur-Pedic International Beats Expectations But Takes A Step Back Anyway

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 dropped and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
Tempur-Pedic International logged revenue of $341.1 million. The 11 analysts polled by S&P Capital IQ expected a top line of $338.7 million on the same basis. GAAP reported sales were 7.0% lower than the prior-year quarter's $366.8 million.

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 $0.60. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.39 for Q4 were 54% lower than the prior-year quarter's $0.84 per share.

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 50.0%, 210 basis points worse than the prior-year quarter. Operating margin was 15.0%, 840 basis points worse than the prior-year quarter. Net margin was 6.9%, 850 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $362.3 million. On the bottom line, the average EPS estimate is $0.68.

Next year's average estimate for revenue is $1.42 billion. The average EPS estimate is $2.63.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 633 members out of 685 rating the stock outperform, and 52 members rating it underperform. Among 219 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 211 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 hold, with an average price target of $32.57.

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The article Tempur-Pedic International Beats Expectations But Takes A Step Back Anyway 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 of Motley 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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