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    Tempur-Pedic Will Help Your Portfolio Sleep Better

    Tue, 04/24/2012 - 15:55 EDT - Seeking Alpha
    • Bill Maurer
    • SCSS
    • TPX
    • ZZ

    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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      By Saj Karsan:Shares of mattress-maker Tempur-Pedic International, Inc. (TPX) fell a whopping 48% Tuesday after the company lowered its guidance for the quarter and the year. This consistent generator of high returns on both equity and capital now trades at a P/E (based on its newly-lowered expectations for the current year) of just 8!

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      By Patrick Fong:Tempur-Pedic (TPX) recently announced a deal to acquire Sealy at $2.20 per share, or about $230 million for the equity of the firm. The acquisition of Sealy is expected to be accretive in the first year of operations, and cost synergies are expected to be in excess of $40 million annually.

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    • Tempur-Pedic Is Severely Undervalued

      By Alex Rasmussen:Tempur-Pedic (TPX) is a leader in the mattress and pillow market. With a history of R&D back to the 1970s, Tempur-Pedic has a proven advantage over traditional foam and air mattresses and pillows. Everyone has seen those ads with the couple jumping on the bed with a wine glass on the other end. They haven't run those ads in years, but it owns a space in your head.

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      By Stock Gamer:Tempur-Pedic International (TPX) designs, manufactures, and distributes sleeping mattresses, pillows, and other related products primarily through retail channels. The stock has plummeted 72% over the past 3 months, mostly attributable to the overall equity market weakness and increasingly stiff competitions among mattress manufacturers.

    • Tempur-Pedic's Share Buybacks Won't Help Investors Sleep

      By Kraken:Tempur-Pedic's (TPX) stock fell more than 40% after the company reported a massive slowdown in sales. The stock was being priced for growth, however, the company's recent earnings report shows the opposite. North American sales are expected to fall 8%. Analysts were expecting earnings per share to be .86 cents, but instead the company is expecting .36 cents per share. That's quite a disappointment.

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