Tempur Sealy Int'l beats by $0.03, beats on revs; guides FY14 revs in-line
Reports Q4 (Dec) earnings of $0.66 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.63; revenues rose 98.8% year/year to $678.1 mln vs the $664.47 mln consensus.
Gross profit margin was 40.2% as compared to 50.0% in the fourth quarter of 2012. The gross profit margin decreased primarily as a result of the inclusion of Sealy, which has lower margins than the Tempur North America and Tempur International segments, and changes in product mix, offset partially by lower sourcing costs.
Co issues guidance for FY14, sees EPS of $2.60-2.85, including $0.10 negative FX effects, may not be comparable to $2.91 Capital IQ Consensus Estimate; sees FY14 revs of $2.8-2.9 bln vs. $2.84 bln Capital IQ Consensus Estimate.
"Our full year 2014 net sales guidance range assumes growth of approximately 1% to 5% compared to 2013, had we owned Sealy for all of 2013. We expect our margins to improve in 2014 resulting from cost synergies and leverage, offset partially by investments in new products, marketing and R&D. In addition, our adjusted EBITDA and adjusted EPS guidance reflects forecasted unfavorable foreign exchange, which is expected to have a negative earnings impact of approximately $9 million, or $0.10 per share."