Tempur Pedic International Inc. (NYSE:TPX) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Tempur Pedic International Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 48.57% to $0.36 in the quarter versus EPS of $0.70 in the year-earlier quarter.
Revenue: Rose 100.51% to $660.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Tempur Pedic International Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company missed the mean analyst estimate of $0.92. It missed the average revenue estimate of $738.36 million.
Quoting Management: CEO Mark Sarvary said that the company was pleased with the performance of its international business and remains optimistic about the potential benefits of the acquisition. And while he believes the steps the company has taken to return its domestic business to growth are appropriate, he said they are taking longer than expected.
Key Stats (on next page)…
Revenue increased 69.34% from $390.1 million in the previous quarter. EPS increased 0% from $0.36 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.7 to a profit $0.81. For the current year, the average estimate has moved down from a profit of $2.94 to a profit of $2.75 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)