Shares of Tempur Sealy International slid after the company cut its full-year adjusted earnings guidance and posted weak third-quarter results as demand for bedding in the U.S. softens.
The stock was down 7.2% at $37.50 in premarket trading. When the market closed Wednesday, shares had gained about 18% year-to-date.
Adjusted Earnings and Sales Outlook
The mattress and bedding company has lowered its outlook for adjusted earnings to $2.30 to $2.50 a share and maintained its sales guidance of flat to slightly higher.
In the third quarter, adjusted earnings were 77 cents a share, 4 cents below the market consensus of analysts polled by FactSet.
Drop in North American Business, Growth in International Segment
Revenue posted a 3.2% top-line drop in its North American business but more than 12% growth in its international segment. The top line of $1.28 billion missed analyst forecasts for $1.31 billion, according to FactSet.
“This outperformance and double-digit growth in international sales partially mitigated a challenged U.S. bedding market, which was softer than anticipated in the quarter,” Chief Executive Scott Thompson said.