Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, May 31, 2013

Article Excerpt

TEMPUR-PEDIC INTERNATIONAL INC., $42.28, symbol TPX on New York, is changing its name to Tempur Sealy International. Its stock will continue to trade under the TPX symbol. Tempur-Pedic completed its $1.3-billion purchase of rival Sealy Corp. in March 2013. This was a major acquisition for Tempur-Pedic, but it lets the company diversify into the market for traditional spring-coil beds. That should help it offset rising competition in its current business. The company makes and distributes Swedish mattresses and neck pillows made from its proprietary Tempur material, which conforms to the body to provide support and help alleviate pressure points. Simmons Bedding Co. and Serta Inc. have both successfully launched memory-foam mattresses that directly compete with Tempur-Pedic’s products. In the three months ended March 31, 2013, Tempur-Pedic’s revenue rose 1.5%, to $390.1 million from $384.4 million a year earlier. Excluding one-time items, earnings per share fell 27.9%, to $0.62 from $0.86. That still beat the consensus estimate of $0.61 a share. Costs…