Temper Pedic Int (TPX) recently surged into a new all-time high as the market rebounds from an extended bout of weakness. This Zacks #2 rank stock has an average earning surprise of 14% over the last four quarter and a bullish 17% growth projection.
Temper Pedic enabled its shareholders to sleep easy after reporting strong Q1 results in late April that marked big gains from the previous year.
First-Quarter Results
Revenue for the period was up 28% from last year to $326 million. Earnings also looked good, coming in at 68 cents, a huge increase from last year’s 44 cents and directly in line with the Zacks Consensus Estimate.
The good results were driven by a strong showing in North America, where mattress sales were up 37% from last year. International revenue increased 11%. Margins were also on the upswing, with gross margin climbing to 52.3% from 49.2% last year.
Buying Shares Back
Temper Pedic was busy returning value to its shareholders during the quarter, repurchasing 1.32 million shares for $62.5 million. The company now has $137.5 million left under its share repurchase authorization.
Estimates
We saw some decent movement in estimates off the good quarter, with the current year adding 11 cents to $2.95 while the next-year estimate gained 27 cents to $3.46, a bullish 17% growth projection.
In light of recent gains, TPX does look a bit pricey, trading with a forward P/E of 24X, a premium to its peer average of 17.5X.
12-Month Chart
On the chart, shares recently surged into a new all-time high as the overall market strengthened. Take a look below.
This Week’s Aggressive Growth Zacks Rank Buy Stocks
Neenah Paper, Inc. (NP) has seen big gains over the last year, currently lingering directly below its recent 52-week high at $23.75. With an average earnings surprise of 31% over the last four quarters and estimates on the rise, this Zacks #1 stock is a solid pick for growth. Read Full Article.
Littlefuse Inc. (LFUS) has posted big gains in 2011, recently rebounding from a long-term trend line to jump higher with the market. With four consecutive earnings surprises and rising estimates, this Zacks #1 rank stock is a solid pick for growth. Read Full Article.
CARBO Ceramics Inc. (CRR) is expected to see double digit earnings growth in 2011 and 2012. After this Zacks #1 Rank (strong buy) had its best quarter in the company’s history in the first quarter, shares hit a 10 year high. Read Full Article.
Don’t count out the pawn shops even as the recovery picks up steam. EZCORP, Inc. (EZPW) is expected to see double digit earnings growth in both fiscal 2011 and 2012. This Zacks #2 Rank (buy) stock is hot, with shares hitting new 52-week highs nearly daily. Read Full Article.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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