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 dropped and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Tempur-Pedic International logged revenue of $341.1 million. The 11 analysts polled by S&P Capital IQ expected a top line of $338.7 million on the same basis. GAAP reported sales were 7.0% lower than the prior-year quarter's $366.8 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 $0.60. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.39 for Q4 were 54% lower than the prior-year quarter's $0.84 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 50.0%, 210 basis points worse than the prior-year quarter. Operating margin was 15.0%, 840 basis points worse than the prior-year quarter. Net margin was 6.9%, 850 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $362.3 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $1.42 billion. The average EPS estimate is $2.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 633 members out of 685 rating the stock outperform, and 52 members rating it underperform. Among 219 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 211 give Tempur-Pedic International a green thumbs-up, and eight 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 $32.57.
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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. 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.