The 10-second takeaway
For the quarter ended March 31 (Q1), Tempur-Pedic International met expectations on revenue and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Gross margin increased, operating margin contracted, and net margin dropped.
Tempur-Pedic International chalked up revenue of $384.4 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $383.6 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $325.8 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 $0.86. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.84 per share. GAAP EPS of $0.86 for Q1 were 26% higher than the prior-year quarter's $0.68 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 53.6%, 130 basis points better than the prior-year quarter. Operating margin was 22.4%, 70 basis points worse than the prior-year quarter. Net margin was 14.6%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $399.1 million. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $4.00.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 438 members out of 495 rating the stock outperform, and 57 members rating it underperform. Among 189 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 176 give Tempur-Pedic International a green thumbs-up, and 13 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 $91.70.
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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. 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.