Reuters: Hot Stocks: UPDATE 2-Tempur-Pedic takes axe to guidance; shares crash

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UPDATE 2-Tempur-Pedic takes axe to guidance; shares crash Jun 6th 2012, 12:47 Wed Jun 6, 2012 8:47am EDT * Sees FY12 EPS $2.70 vs est $3.93 * Shares slump 44 pct premarket (Adds details, background; updates shares) June 6 (Reuters) - Mattress maker Tempur-Pedic International Inc slashed its full-year earnings and revenue forecast as increased competition in North America hits sales, sending its shares crashing 44 percent in premarket trading. Tempur-Pedic, which sells higher-priced, foam-based and other specialty mattresses, now expects to earn $2.70 per share, down from its previous forecast of $3.80 to $3.95. CEO Mark Sarvary said in a statement that an "unprecedented number of new competitive product introductions", supported by aggressive marketing and promotion, have led to disappointing sales in North America. Tempur-Pedic had seen explosive growth over the past few years, taking market share from privately held Serta Inc and Simmons Bedding Co, as well as Sealy Corp, all of whom get a majority of their sales from the more traditional beds containing coil springs. However, Simmons and Serta have both launched successful specialty mattress products over the past couple of years, while Sealy also has increased its presence in that market. Tempur-Pedic now expects fiscal 2012 sales of about $1.43 billion, down from $1.6 billion to $1.65 billion. Analysts on average were expecting full-year earnings of $3.93 per share on revenue of $1.64 billion, according to Thomson Reuters I/B/E/S. Shares of the company fell to $24.55 before the bell. They closed at $43.67 on Tuesday on the New York Stock Exchange. (Reporting by Mihir Dalal and Juhi Arora in Bangalore; Editing by Maju Samuel) Link this Share this Digg this Email Reprints

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