Tempur-Pedic Will Help Your Portfolio Sleep Better
By Bill Maurer: No, I'm not talking about the mattress. I don't know if it will make you sleep any better or any worse. I don't own one. But after Friday's large drop, I do own shares of Tempur-Pedic (TPX). The mattress and bedding firm saw its shares plunge more than 20% after its first-quarter earnings report. The stock continued lower on Monday. However, the report wasn't bad at all, and I believe that Friday's drop was a complete overreaction. I'll tell you why I bought the shares, and why long-term investors should use this opportunity to buy shares at a discounted price.
First Quarter Earnings
Tempur-Pedic reported record first-quarter revenue of $384.4 million, which was up 18% over the prior year period. Earnings per share rose from $0.68 in 2011 to $0.86 in 2012, beating analyst expectations by two cents per share. The following table shows key income data for the company'sComplete Story »
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