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Tempur Pedic International Goes Red

By Seth Jayson - Updated Apr 7, 2017 at 12:12PM

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Just the facts, Fool.

Tempur Pedic International (NYSE: TPX) reported earnings on Oct. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Tempur Pedic International missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Tempur Pedic International reported revenue of $347.9 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $362.5 million on the same basis. GAAP reported sales were 9.2% lower than the prior-year quarter's $383.1 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 $0.70. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.70 per share. GAAP EPS were -$0.03 for Q3 against $0.90 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 49.2%, 320 basis points worse than the prior-year quarter. Operating margin was 18.2%, 700 basis points worse than the prior-year quarter. Net margin was -0.6%, 1,680 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $354.0 million. On the bottom line, the average EPS estimate is $0.79.

Next 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 646 members out of 700 rating the stock outperform, and 54 members rating it underperform. Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 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 $33.67.

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.

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Stocks Mentioned

Tempur Sealy International, Inc. Stock Quote
Tempur Sealy International, Inc.
TPX
$28.08 (3.23%) $0.88

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