Tempur Sealy International Inc (TPX) Q3 2024 Earnings Call Highlights: Strong International ...

GuruFocus.com11-08

Net Sales: Increased 2% to $1.3 billion. Adjusted EBITDA: Grew 6% to $275 million. GAAP EPS: Increased 14% to $0.73 per share. Adjusted EPS: Grew 7% to $0.82 per share. Free Cash Flow: Delivered $240 ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTempur Sealy International Inc (TPX) Q3 2024 Earnings Call Highlights: Strong International ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-08 15:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/tempur-sealy-international-inc-tpx-070830779.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Net Sales: Increased 2% to $1.3 billion.\nAdjusted EBITDA: Grew 6% to $275 million.\nGAAP EPS: Increased 14% to $0.73 per share.\nAdjusted EPS: Grew 7% to $0.82 per share.\nFree Cash Flow: Delivered $240 ...</p>\n\n<a href=\"https://finance.yahoo.com/news/tempur-sealy-international-inc-tpx-070830779.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TPX","symbol_name":"泰浦陛迪国际公司","start_time":0,"source_url":"https://finance.yahoo.com/news/tempur-sealy-international-inc-tpx-070830779.html","article_id":"2481110990","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/O1Gt4C.rm9xK0yNrF6oZSg--~B/aD0xNzt3PTIyMDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/us.finance.gurufocus/0538e1412508c84d6041f5b6fcc00c3b"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481110990","pubTimestamp":1731049710,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"GAAP EPS: Increased 14% to $0.73 per share.Adjusted EPS: Grew 7% to $0.82 per share.Adjusted EBITDA Margin: 21.1%, strongest in 10 quarters.North American Adjusted Gross Margin: Declined 10 basis points to 43.1%.International Net Sales: Grew 12% on a reported basis.International Gross Margin: Improved 70 basis points to 57.3%.International Adjusted Operating Margin: Improved 200 basis points to 18.2%.2024 Adjusted EPS Guidance: Between $2.45 and $2.55.Quarterly Dividend: $0.13, an 18% increase over prior year.GuruFocus has detected 2 Warning Sign with TPX.The North American adjusted operating margin declined by 20 basis points to 20.1%, driven by a decline in gross margin and operating expense deleverage.A: Scott L. Thompson, CEO: The bedding industry has been in a recession, down about 30% from peak levels. We anticipate a recovery led by the Sealy Posturepedic launch, the largest in Sealy's history. With potential rate cuts and improved housing data, we expect normalization in 2025. ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"TPX":"泰浦陛迪国际公司"},"translate_title":"泰普尔丝涟国际公司(TPX)2024年第三季度收益看涨期权亮点：强劲的国际……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TPX":1},"content_text":"Net Sales: Increased 2% to $1.3 billion.\nAdjusted EBITDA: Grew 6% to $275 million.\nGAAP EPS: Increased 14% to $0.73 per share.\nAdjusted EPS: Grew 7% to $0.82 per share.\nFree Cash Flow: Delivered $240 million.\nAdjusted EBITDA Margin: 21.1%, strongest in 10 quarters.\nNorth American Net Sales: Declined approximately 1%.\nNorth American Adjusted Gross Margin: Declined 10 basis points to 43.1%.\nInternational Net Sales: Grew 12% on a reported basis.\nInternational Gross Margin: Improved 70 basis points to 57.3%.\nInternational Adjusted Operating Margin: Improved 200 basis points to 18.2%.\nConsolidated Debt Less Cash: $2.2 billion.\nLeverage Ratio: 2.4 times under credit facility.\n2024 Adjusted EPS Guidance: Between $2.45 and $2.55.\n2024 CapEx: Approximately $125 million.\nQuarterly Dividend: $0.13, an 18% increase over prior year.\n\n\nWarning! GuruFocus has detected 2 Warning Sign with TPX.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nTempur Sealy International Inc (NYSE:TPX) reported a 2% increase in net sales to $1.3 billion and a 6% growth in adjusted EBITDA to $275 million for the third quarter of 2024.\nThe company's GAAP EPS grew by 14% to $0.73 per share, and adjusted EPS increased by 7% to $0.82 per share compared to the same period last year.\nThe adjusted EBITDA margin reached 21.1%, the strongest in 10 quarters, driven by consolidated growth and operating efficiency initiatives.\nInternational sales grew by 12% on a reported basis, with a 200 basis point expansion in international operating margins.\nThe Tempur-Pedic brand was awarded the number one in customer satisfaction in both in-store retail and online mattress segments by J.D. Power's 2024 Mattress Satisfaction Report.\n\n Negative Points \n\nThe overall bedding industry remains significantly below historical volumes, with a 30% decline from peak mattress unit demand in 2021.\nNorth American net sales declined approximately 1% in the third quarter, with a 10 basis point decline in adjusted gross margin to 43.1%.\nThe company is facing a challenging demand environment, particularly at the lower price point, impacting product mix and margins.\nThe proposed acquisition of Mattress Firm is subject to ongoing litigation with the FTC, which could delay the transaction.\nThe North American adjusted operating margin declined by 20 basis points to 20.1%, driven by a decline in gross margin and operating expense deleverage.\n\n Q & A Highlights \nQ: Can you discuss the potential impact of the Fed cutting rates on consumer demand and how Tempur Sealy plans to respond with new product introductions? A: Scott L. Thompson, CEO: The bedding industry has been in a recession, down about 30% from peak levels. We anticipate a recovery led by the Sealy Posturepedic launch, the largest in Sealy's history. With potential rate cuts and improved housing data, we expect normalization in 2025. Tempur Sealy is well-positioned to capture market share, having consistently done so in previous quarters.\nQ: How should we think about the contribution margin of the business given recent changes like manufacturing optimization and new distribution? A: Bhaskar Rao, CFO: Assuming the current distribution and brand mix continues, international business is growing in low double digits with higher contribution margins than the U.S. The U.S. contribution margin is around 30-35%. As the lower-end consumer returns, there will be incremental EBITDA, but the mix will impact contribution margins.\nQ: What is your outlook for the bedding industry heading into 2025, considering the current market conditions? A: Scott L. Thompson, CEO: We don't see housing as the primary driver for bedding. Instead, advertising, innovation, and consumer confidence are key. The U.S. consumer has held up well, and with political stability and strong product innovation, we expect a return to normal growth rates. The Sealy Posturepedic launch is expected to help normalize the market.\nQ: How does the North American gross margin performance in Q3 inform expectations for next year, and what impact do tariffs have on the outlook? A: Bhaskar Rao, CFO: North American margins saw expansion due to productivity, offset by mix. As we move into 2025, mix will be less of a headwind. Tariffs on China don't impact us significantly as we no longer source directly from there. Any tariffs on other countries would likely be passed on.\nQ: Can you elaborate on the sustainability of international growth given the tough macro environment? A: Scott L. Thompson, CEO: The new Tempur product, backed by effective advertising, is driving growth. We've also expanded distribution and adjusted our product positioning. The Dreams team in the UK is executing well, taking significant market share. We believe these factors will sustain growth despite macro challenges.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481110990"}