Published July 24, 2014
NEW YORK – Tempur Sealy reported a larger second-quarter loss on Thursday, and the bedding maker's shares slumped after it adjusted its annual guidance.
The company raised its sales forecast but forecast slightly lower EBITDA, or earnings before interest, taxes, depreciation and amortization. Tempur Sealy shares lost $2.37, or 3.9 percent, to $58.75 in after-market trading.
Tempur Sealy reported a loss of $2.2 million, or 4 cents per share, after losing $1.6 million, or 3 cents per share, a year ago. The Lexington, Kentucky, company said it turned a profit of 39 cents per share if one-time items are excluded, up from 36 cents per share one year earlier. Its revenue rose 8.2 percent, to $715 million from $660.6 million.
FactSet says analysts expected net income of 41 cents per share and $703.3 million in revenue.
One-time items in the second quarter included a $20.4 million loss on the sale of three component production facilities and $5.2 million in costs from integrating Sealy into its business. Tempur-Pedic bought Sealy in 2013 for $228.6 million to help give it an edge in the competitive mattress industry.
For the full year, the company still expects adjusted income of $2.60 to $2.85 per share. It forecast $2.93 billion to $2.98 billion in revenue, up from a range of $2.8 billion to $2.9 billion. It trimmed its guidance for annual EBITDA to a range of $410 million to $430 million from its prior estimate of $415 million to $435 million.
Analysts expect net income of $2.78 per share and $2.89 billion in revenue, on average.
Tempur Sealy International Inc. shares rose 1 cent to $61.12 on Thursday.