Tempur Sealy Q1 Earnings Tops Estimates, Cuts FY22 Outlook

Tempur Sealy International Inc TPX reported first-quarter FY22 sales growth of 18.7% year-on-year to $1.24 billion, beating the consensus of $1.20 billion.
Sales in North America rose 5.4% Y/Y, and the International segment sales gained 92%.
Gross margin for the quarter contracted 180 basis points to 42.2%, and the gross profit rose 13.9% Y/Y to $522.8 million.
Operating margin was 15.2%, and operating income for the quarter rose 0.1% to $188.6 million.
Adjusted EBITDA rose 1.8% Y/Y to $234.5 million.
EPS of $0.69 beat the analyst consensus of $0.60.
The company held $116.3 million in cash and equivalents as of March 31, 2021. Cash provided by operating activities for the quarter totaled $85.6 million.
Dividend: TPX Board declared a second-quarter cash dividend of $0.10 per share, payable on May 26, 2022, to shareholders of record as of May 12, 2022.
Outlook: Tempur Sealy has cut the FY22 EPS to $3.20 - $3.40 from the prior view of $3.65 - $3.85, against the consensus of $3.36.
It expects FY22 sales growth of at least 10% (prior view 15% - 20% growth).
Price Action: TPX shares are trading higher by 4.35% at $27.97 on the last check Thursday.

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