July 20, 2010 / 10:21 PM / 7 years ago

UPDATE 2-Tempur-Pedic Q2 beats Street; ups FY view

* Q2 EPS $0.46 vs est. $0.42

* Q2 sales $263 mln vs est. $248.3 mln

* Sees FY EPS $1.85-$2 vs est. $1.86

* Shares up 3.3 pct after the bell (Recasts; adds details from conferance call, updates share movement)

July 20 (Reuters) - Tempur-Pedic International Inc’s (TPX.N) second-quarter profit beat Wall Street expectations, helped by strong sales in North America, and the mattress maker raised its full-year outlook.

“We are doing this in an environment that is still quite unpredictable. We hear from many of our retailers that consumer traffic is still not back to normal,” Chief Executive Mark Sarvary cautioned on a call with analysts.

However, the company would be able to sustain share gains made in the first half of the year into the back half, he said.

For the full year, the company now expects earnings of $1.85 per share to $2 per share on sales of $1.06 billion to $1.1 billion.

It earlier expected full-year earnings of $1.70 to $1.85 a share on sales of $1.02 billion to $1.06 billion.

Analysts were expecting the company to earn $1.86 a share on sales of $1.01 billion for the full year, according to Thomson Reuters I/B/E/S.

Last month, rival mattress maker Sealy Corp ZZ.N, which does not provide outlook, posted quarterly profit that matched expectations but said it continues to see stabilization in the retail environment as macro-economic and consumer credit conditions improve. [ID:nSGE65S0KM]

Another rival Select Comfort Corp (SCSS.O) reports quarterly results Wednesday after the bell.

The U.S. mattress industry has seen a strong rebound after sales plunged the most in two decades in 2008, and the International Sleep Products Association expects units shipped to rise 4.5 percent and their wholesale dollar values to rise 7.5 percent in 2010.

Tempur-Pedic, which acquired its Canadian distributor earlier this year, said it has nearly doubled the number of doors in that market since the beginning of the year and continues to see considerable growth opportunities there over the next several years.

Q2 BEAT

For the quarter ended June 30, the company earned $33.5 million, or 46 cents a share, compared with $16.9 million, or 22 cents, last year.

Analysts were expecting the company to earn 42 cents a share in the quarter.

Sales surged 42 percent to $263 million, breezing past analysts’ view of $248.3 million, with mattress sales growing 58 percent in North America.

The company also said its Cloud line of mattresses, which boosted sales last quarter, continued to sell well and that the distribution of the high-end model in the line will begin in the third quarter.

The company, which bought back 3 million of its shares in the quarter, also said its board had given the nod to further buy back up to $100 million worth of its shares.

Shares of the company were up 3.3 percent at $33.05 after the bell. They closed at $31.98 Tuesday on the New York Stock Exchange. (Reporting by Abhishek Takle in Bangalore; Editing by Vyas Mohan and Maju Samuel)

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