Tempur Sealy International
The 10-second takeaway
For the quarter ended June 30 (Q2), Tempur Sealy International met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Tempur Sealy International recorded revenue of $660.6 million. The nine analysts polled by S&P Capital IQ looked for net sales of $667.0 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $329.5 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 $0.36. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. Non-GAAP EPS of $0.36 for Q2 were 20% lower than the prior-year quarter's $0.45 per share. GAAP EPS were -$0.03 for Q2 versus $0.45 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.6%, much worse than the prior-year quarter. Operating margin was 6.5%, 790 basis points worse than the prior-year quarter. Net margin was -0.2%, 900 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $713.3 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $2.44 billion. The average EPS estimate is $2.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 596 members out of 646 rating the stock outperform, and 50 members rating it underperform. Among 196 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 189 give Tempur Sealy International a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tempur Sealy International is outperform, with an average price target of $51.88.
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