Yahoo Finance Analysts Just Made A Notable Upgrade To Their Tempur Sealy International, Inc. (NYSE:TPX) Forecasts
Tempur Sealy International, Inc. (NYSE:TPX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on Tempur Sealy International too, with the stock up 14% to US$32.51 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the upgrade, the current consensus from Tempur Sealy International's ten analysts is for revenues of US$4.3b in 2021 which - if met - would reflect a solid 18% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 44% to US$2.42. Prior to this update, the analysts had been forecasting revenues of US$3.9b and earnings per share (EPS) of US$2.01 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
View our latest analysis for Tempur Sealy International
It will come as no surprise to learn that the analysts have increased their price target for Tempur Sealy International 25% to US$40.13 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Tempur Sealy International at US$47.00 per share, while the most bearish prices it at US$30.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Tempur Sealy International's growth to accelerate, with the forecast 18% growth ranking favourably alongside historical growth of 1.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Tempur Sealy International is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Tempur Sealy International could be worth investigating further.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Tempur Sealy International analysts - going out to 2025, and you can see them free on our platform here.
We also provide an overview of the Tempur Sealy International Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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