Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, January 29, 2010

Article Excerpt

TEMPUR-PEDIC, $24.89, symbol TPX on New York, reported sharply higher revenue and earnings in the latest quarter. In the three months ended December 31, 2009, Tempur-Pedic’s earnings rose 129.1%, to $29.1 million, or $0.38 a share, from $12.7 million, or $0.17 a share, a year earlier. This result was slightly higher than the $0.37 a share that analysts were expecting. The higher earnings were mainly caused by a 29.4% revenue increase, to $244.8 million from $189.1 million a year earlier. As well, the company’s international sales rose 15%, and its U.S. sales jumped 40%. Tempur-Pedic also paid less for raw materials during the quarter. And it has done a good job of streamlining its production and cutting costs. The company continues to pay down debt. It lowered its long-term debt by $120.7 million in 2009, to $297.5 million. That’s a low 15.7% of its market cap. Tempur-Pedic also holds cash of $14 million, or $0.19 a share. To conserve cash and…