Tempur Pedic International (NYSE: TPX) is expected to report Q3 earnings on Oct. 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Tempur Pedic International's revenues will contract -5.4% and EPS will contract -22.2%.

The average estimate for revenue is $362.5 million. On the bottom line, the average EPS estimate is $0.70.

Revenue details
Last quarter, Tempur Pedic International recorded revenue of $329.5 million. 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 details
Last quarter, EPS came in at $0.45. 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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $1.43 billion. The average EPS estimate is $2.79.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 647 members out of 701 rating the stock outperform, and 54 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 give Tempur Pedic International a green thumbs-up, and nine 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.

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.