So Much for Going to the Mattresses
Fresh data are showing that things are not at all good in Europe. Spain's industrial production was down 8.3%, year-over-year, in April, German industrial production fell more than expected in April and officials in Greece are saying that despite the latest bailout, the government faces a shortfall of 1.7 billion euros because tax revenue and other sources of income are disappearing. Factor in this morning's anticipation about pending news from the European Central Bank (ECB) as to the magnitude of the interest rate cut it may consider and when, and it is easy to see how two dismal earnings reports from mattress companies Mattress Firm Holding (MFRM) and Tempur-Pedic International (TPX) can get overlooked.
After Tuesday's market close, both companies shared reduced expectations for the current quarter and offered updated outlooks that taken together suggest all may not be well in mattress land. Mattress Firm reported May quarter revenues that fell well short of analyst expectations: $210 million vs. $212 million consensus forecast for the quarter. The company also updated its current quarter forecast to $0.26-$0.29 in earnings per share on revenue between $270 million-$275 million, but that too fell short of Street expectations of $0.33 in earnings per share (EPS) and $278 million in revenue. ...411 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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