Topic: How To Invest

Stock Pickers Digest Hotline – Friday, September 30, 2016

Article Excerpt

TEMPUR SEALY INTERNATIONAL INC., $56.74, symbol TPX on New York, manufactures and distributes mattresses and neck pillows made of its patented memory foam, Tempur. The company’s shares moved up from around $53 in late July 2016 to $82.61 earlier this month. That growth was driven by higher revenue and sharply higher profits for the three months ended June 30, 2016. Excluding unusual items, earnings per share jumped 73.6% in the quarter, to $0.92 from $0.53. Sales gained 5.2%, to $804.4 million from $764.4 million. However, Tempur Sealy’s shares lost most of those gains this week when the company announced that its sales in the current quarter would be lower than expected. It hasn’t given any specific reasons for the expected shortfall. One likely explanation is the growing number of Americans who are now buying mattresses online from companies such as Casper and Tuft & Needle. Those retailers offer a limited range of foam mattresses at fixed prices. As part of their service,…