Tempur-Pedic International
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.
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