Tempur-Pedic International, Inc.

Tempur-Pedic International, Inc. (TPX - Snapshot Report) recently hit a new 52-week high after reporting better than expected third-quarter results in mid October.

Company Description

Tempur-Pedic International Inc. manufactures and sells specialty bedding products worldwide. The company was founded in 1989 and has a market cap of $1.62 billion.

Shares of TPX have been volatile over the last 12 months, dropping sharply with the market last year before recovering in March and posting big gains. The company's better than expected third-quarter results, reported on Oct 15 gave shares an extra push higher.

Third-Quarter Results

Sales were down 11% from last year to $224.1 million, but earnings came in ahead of expectations at 34 cents per share, 8 cents better than the Zacks Consensus Estimate.

The company noted that its results were helped by lower commodity costs, manufacturing gains and higher selling prices.

Estimates Jump

After the good quarter hit the Street, estimates jumped higher, with the current year adding 16 cents and advancing to $1.03 per share. The next-year estimate is pegged at $1.25, a 21% growth projection.

Valuation

Based on the current-year estimate, shares of TPX have a P/E multiple of 21X, a slight premium to the overall market.

The Chart

Shares of TPX have been trending higher since bottoming out just shy of $4 in early March. Take a look at the nice move below.

Read the full analyst report on TPX