TPX Earnings Prediction
The chart below shows how TPX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TPX sees a -1.19% change in stock price 10 days leading up to the earnings, and a +2.71% change 10 days following the report. On the earnings day itself, the stock moves by +2.04%. This data can give you a slight idea of what to expect for the next quarter's release.
TPX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.30B
1.79%
5.38%
Gross Margin
45.99%
0.70%
2.36%
Operating Margin
17.02%
3.47%
18.28%
Net Margin
9.98%
11.88%
15.64%
EPS
0.73
14.06%
21.67%
No Data Available
TPX Earnings Analysis
TEMPUR SEALY INTERNATIONAL, INC. Corporation (TPX.N) Earnings Conference Call
Positive
Revenue Increase Q3 2024: 1. Strong Revenue Growth: Net sales increased by 2% to $1.3 billion in Q3 2024 compared to the same period last year.
Profitability Improvement: 2. Improved Profitability: Adjusted EBITDA grew by 6% to $275 million, resulting in an adjusted EBITDA margin of 21.1%, the strongest in 10 quarters.
Strong Free Cash Flow: 3. Significant Free Cash Flow: The company generated $240 million in free cash flow, marking the strongest quarter since Q3 2021.
International Sales Growth: 4. International Sales Surge: International net sales grew by 12% on a reported basis, with a 200 basis point improvement in international operating margins.
Customer Satisfaction Award: 5. Customer Satisfaction Recognition: Tempur-Pedic was awarded number one in customer satisfaction in both in-store and online mattress segments by J.D. Power's 2024 Mattress Satisfaction Report.
Negative
North American Sales Decline: 1. Decline in North American Sales: Net sales through both wholesale and direct channels in North America declined approximately 1% in Q3 2024 compared to the previous year.
Gross Margin Decline: 2. Decreased Gross Margin: North American adjusted gross margin decreased by 10 basis points to 43.1%, primarily due to the mix impact from new distribution wins and operational inefficiencies.
Bedding Industry Decline: 3. Weak Industry Performance: The US bedding industry unit volumes are expected to be down high-single-digits in 2024, representing over a 30% decline from peak mattress unit demand in 2021.
2024 EPS Guidance Reduction: 4. Lowered 2024 Guidance: The company narrowed its adjusted EPS outlook to between $2.45 and $2.55, indicating only a 4% growth year-over-year, which reflects a challenging market environment.
Advertising Investment Impact: 5. Increased Advertising Spend: The company anticipates a significant advertising spend of approximately $465 million in 2024, which may pressure margins as they support leading brands and new product launches.
TPX FAQs
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TPX Earning Call Sentiment
Tempur Sealy International, Inc. (TPX) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
TPX.N
1.73%Positive
The earnings call reveals a mix of positive financial performance with net sales, EBITDA, and EPS growth. The increase in quarterly dividends and strong free cash flow are positive signals. However, competitive pressures and operational risks are noted. The Q&A highlights management's optimism about market recovery and growth, particularly in international markets, despite some vagueness in responses. The overall sentiment is positive, with strong financial metrics and optimistic guidance outweighing concerns, likely leading to a positive stock price movement in the short term.
