Tempur-Pedic Shares Climb on Q4 Results (TPX)
Shares of Tempur-Pedic International Inc. (NYSE: TPX), which pioneered in foam-based technology developed by NASA for making specialty beds, climbed on Friday after its fiscal fourth-quarter earnings beat analysts’ consensus estimate whilst sales in the period fell lower-than-expected.
Tempur-Pedic, whose business has seen choppy times lately due to intensifying competition, agreed to acquire Sealy Corp. in September 2012 as the mattress maker looked to revitalize its sales.
The Lexington, Kentucky-based company’s stock plummeted 40% in 2012 while Standard & Poor’s Midcap Consumer Discretionary Sector Index soared 22 percent, a data provided by Bloomberg showed
The company is hoping that the acquisition of Sealy—which has grown briskly in the recent past, will help it to regain traction. Currently, both companies are collaborating with the Federal Trade Commission for an antitrust review. It is expected that the transaction will be completed by the first half of 2013.
“We remain very confident in our company’s growth potential and our strong brand, and are very excited about our proposed combination with Sealy,” said Mark Sarvary, CEO of Tempur-Pedic , in a statement on Thursday.
For the fiscal fourth quarter, Tempur-Pedic reported adjusted profit of 60 cents a share, beating analysts’ consensus forecast of 55 cents a share, according to a poll conducted by Bloomberg.
Net sales during the quarter slumped 7 percent to $341.1 million while analysts were expecting revenue of $338.9 million.
For fiscal 2013, the Company expects adjusted profit of $2.55 a share on revenue of $1.425 billion while analysts’ consensus estimate, according to Bloomberg, is for earnings of $2.72 a share on revenue of $1.427 billion.
At last check on Friday, TPX shares were trading 6.81% higher at $40.96 on above average volume of 8.25 million. The stock rose to an intra-day high of $43.45.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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