Tempur Sealy International Inc. (NYSE: TPX) issued a business update for its guidance for its third quarter and 2016 full year, as well as provided some information on its sales trends. Although the company is putting out some numbers, these are still subject to change.
Note the company expects to report its third-quarter financial results on October 27, while a date has not yet been set for its full-year results.
Scott Thompson, Tempur Sealy board chair and chief executive commented:
Third quarter net sales are below our prior expectations. We currently expect net sales for the full year to be down 1 to 3 percent as compared to 2015. For the full year 2016, the Company currently expects Adjusted EBITDA to range from $500 million to $525 million.
The consensus estimates from Thomson Reuters call for $1.40 in EPS on $911.03 million in revenue for the third quarter. The same period of last year reportedly had EPS of $1.11 and $880 million in revenue.
For the 2016 full year, the consensus estimates predict that the company will have $4.18 in EPS on revenue of $3.23 billion. The 2015 full-year posted results were $3.19 in EPS on $3.15 billion in revenue.
While our net sales are below expectations, our operational initiatives are going well and are continuing to drive considerable margin expansion. The net impact of the revenue shortfall and our continued margin expansion is that we felt it was appropriate to lower the midpoint of our adjusted EBITDA guidance by 5%. The midpoint of this updated guidance implies an increase in adjusted EBITDA of approximately 12% and approximately 20% growth in adjusted earnings per share compared to 2015.
Excluding Wednesday’s move, the stock has underperformed the broad markets, with the stock up only about 5.6% year to date. Over the past 52 weeks, the stock was up only about 4%.
Shares of Tempur Sealy were trading down 24% at $56.57 on Wednesday, with a consensus analyst price target of $84.40 and a 52-week trading range of $50.80 to $82.61.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.