(By Balachander) Mattresses maker Tempur-Pedic International Inc. (NYSE:TPX) issued a weak second-quarter earnings forecast and slashed its full-year guidance, citing "disappointing" sales trends at its North America business because of "unprecedented" number of new competitive product launches.
The Lexington, Kentucky-based company sees second quarter earnings per share (EPS) to decline about 50 percent on 3 percent to 5 percent drop in sales from the year-ago period, with North American sales expected to fall roughly 8 percent.
For the full year, the company now expects EPS of around $2.70 from prior expectations of $3.80 to $3.95. Sales are now projected to be about $1.43 billion from $1.60 billion to $1.65 billion projected earlier. Analysts expect earnings of $3.93 per share on sales of $1.65 billion for the year.
[Related -Is Japan Hinting About Its Own 'Tapering'?]
For the third and fourth quarters, the company said its forecast for North American sales will each be nearly equal to the second quarter sales factoring in modest seasonality.
The stock, which has been trading in the 52-week range between $41.53 and $87.43, closed Tuesday's regular trading at $43.67.