Will Tempur Sealy Report Another In-Line Quarter?

Tempur Sealy International Inc TPX is scheduled to report its first quarter financial results on Tuesday, after the market close.

A look at Estimize reveals that –uncommonly- experts and the crowd both expect EPS to come in at $0.48. There is, however, a small divergence regarding revenue estimates: while Wall Street analysts model consensus revenue of $719.54 million, Main Street projects revenue of $722.64 million.

This estimate implies a decrease of almost 10 percent from the EPS of $0.53 posted in the same quarter last year, and an even larger fall from last quarter’s $0.86.

It is also important to notice that Tempur Sealy has reported actual earnings very close to estimates in the last eight quarters. The graph below illustrates this history:

GRAPH

Another graph (see below) shows how projections evolved over time. Over the quarter, Wall Street estimates experienced a steep fall, from a consensus (for EPS) of $0.64 in early-February, to $0.48 around mid-February.

GRAPH

Analyst Opinion

In a recent report, Tigress Financial Partners downgraded shares of Tempur Sealyfrom Strong Buy to Buy as they expect a deceleration in performance metrics in 2015.

Despite this downgrade, the firm continues to believe "margin improvement, favorable discretionary income trends in the U.S. and international growth potential will drive economic profit growth and increasing shareholder returns albeit at a reduced rate."