Tempur-Pedic shares crushed on forecast
SAN FRANCISCO (MarketWatch) — Price competition continues to hammer bed-mattress maker Tepur-Pedic , which is in the process of buying its smaller rival Sealy . Tempur-Pedic late Tuesday cuts its 2012 profit forecast, driving its shares down 15% to .90 in after-hours trade. The company said it would earn .55 a share, below the .80 a share analysts were looking for. During the third quarter, Tepur-Pedic said global mattress sales fell 11% and 15% in North America. Gross margin fell to 49.2% from 52.4% in the same 2011 quarter. Tepur-Pedic swung to a loss of million, or 3 cents a share, from a profit of million, or 90 cents a share, in the year-ago period. Excluding charges, the company said it earned 70 cents a share.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
