Why Shares of Tempur Sealy Slumped Today
Shares of Tempur Sealy International (NYSE: TPX) dropped on Thursday after the company reported a mixed third quarter. Revenue fell short of expectations, with particularly weak performance in North America, while earnings came in slightly ahead of analyst estimates. The stock was down about 14% at noon EDT.
Tempur Sealy reported third-quarter revenue of $724.8 million, down 12.9% year over year and $31 million below the average analyst estimate. Sales in North America plunged 16.9% to $580.6 million, with the hurricanes in Texas and Florida, two of the company's largest markets, knocking down sales by $10 to $15 million. Tempur Sealy terminated its contract with Mattress Firm during the second quarter; excluding those sales, North American revenue increased by 10% year over year.
Image source: Tempur Sealy.
Source: Fool.com
