Sometimes it can be rather difficult to find out why a certain
company had a good day. But that's not the case with
Tempur-Pedic International Inc.
) on Wednesday. There's a very clear reason why this mattress
company gained nearly 9% today and became a top-performing Zacks #1
Yesterday, TPX did just about everything right in its
fourth-quarter report. Not only did it beat the Zacks Consensus
Estimate and report double-digit revenue growth, but it also issued
an EPS outlook for 2012 that forced analysts to raise estimates.
The company forecasted earnings per share of between $3.80 and
$3.95 per share for 2012. Before this announcement, the Zacks
Consensus Estimate was at $3.77. Now our expectation is at $3.86,
which accounts for a 2.4% improvement in the past seven days.
TPX also expects revenue of $1.6 billion to $1.65 billion.
For the quarter, the company earned 84 cents per share, which
easily surpassed last year's results while also coming in 2.44%
better than the Zacks Consensus Estimate. TPX has an excellent
history of outperforming expectations, as the graph below shows:
Net sales were up 25% to $366.8 million.
"Over the next year, we plan to increase our rate of investment in
areas that will drive growth including a major new product launch,
increased advertising, and expanded distribution," said CEO Mark
Sarvary, who also outlined a broad technology strategy that
includes a focus on improving the existing product performance,
lowering costs and a major new product launch in 2013.
Tempur-Pedic International Inc. manufactures and distributes
mattresses and pillows made from its proprietary TEMPUR®
pressure-relieving material. Products are currently sold in over 80
countries under the TEMPUR® and Tempur-Pedic® brand names.
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