Tempur-Pedic Stock Plummeting on Full Year Guidance
June 06, 2012
Investors with stakes in Tempur-Pedic (NYSE:TPX) will not be sleeping well after today's trading session. The premium mattress manufacturer is dropping like a rock in early trading, already down over 40%. This is due to the company's disappointing full year guidance and comments on second quarter.Tempur-Pedic stated in a press release this morning that sales for the second quarter will be 3-5% below the same period last year, with sales in North America declining 8% year-over-year. With this in mind, the company expects earnings per share for Q2 to drop approximately 50%.As for the full year, the mattress maker said it expects an EPS of $2.70, well below what analysts were expecting of $3.93.This is a big set back for the company since its stock has been climbing for most of the year, hitting a high near $87.00 in April. But, with a steep drop and declines in May, this is just another one of the many blows to the stock.