Sealy (NYSE: ZZ) reported earnings March 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 26 (Q1), Sealy beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share increased. The non-GAAP profit was a surprise, as analysts had predicted a loss.

Margins improved across the board.

Revenue details
Sealy reported revenue of $312.3 million. The five analysts polled by S&P Capital IQ hoped for a top line of $303.5 million on the same basis. GAAP reported sales were 2.2% higher than the prior-year quarter's $305.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.02. The three earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share on the same basis. GAAP EPS were $0.01 for Q1 against -$0.01 per share for the prior-year quarter.

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 39.2%, 40 basis points better than the prior-year quarter. Operating margin was 8.3%, 190 basis points better than the prior-year quarter. Net margin was 0.4%, 70 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $311.3 million. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $1.25 billion. The average EPS estimate is $0.05.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 140 members out of 216 rating the stock outperform, and 76 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Sealy a green thumbs-up, and 29 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sealy is hold, with an average price target of $1.50.

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