UPDATE 2-Tempur-Pedic Q4 profit beats Street by a cent

* Q4 EPS $0.38 vs est $0.37

* Revenue up 29 pct at $244.8 mln vs est $243.2 mln

* Reaffirms 2010 forecast

* To buy back up to $100 mln in shares

* Says order momentum strong in Q1 so far
(Recasts, adds conference call details and updates stock
movement)

Jan 26 (BestGrowthStock) – Mattress maker Tempur-Pedic
International Inc (TPX.N: ) posted a quarterly profit that edged
past market estimates, helped by higher margins, and said it is
experiencing strong order momentum so far in the first quarter.

The company, which said it would buy back up to $100
million in stock, said on its earnings conference call that it
sees gross margin expansion of about 100 basis points in 2010.

Tempur-Pedic, which introduced its Cloud Supreme range in
September, said it will expand its retail square footage in
2010.

“We will also improve the reach and effectiveness of our
direct business, particularly through the internet,” Chief
Executive Mark Sarvary said on the call.

Net income for the fourth quarter was $29.1 million, or 38
cents per share, compared with $1.1 million, or 1 cent a share,
a year ago.

Revenue rose 29 percent to $244.8 million.

Analysts on average were expecting earnings of 37 cents per
share, before items, on revenue of $243.2 million, according to
Thomson Reuters I/B/E/S.

For the fourth quarter, gross margins rose to 48.5 percent
from 43 percent a year ago.

Tempur-Pedic reaffirmed its 2010 outlook of earnings of
$1.40 to $1.50 per share on net sales of $950 million to $970
million.

Shares of the Lexington, Kentucky-based company were down 3
percent at $24.69 after the bell. They closed at $25.36 Tuesday
on the New York Stock Exchange.

Stock Research
(Reporting by Shobhana Chadha in Bangalore; Editing by Anne
Pallivathuckal)

UPDATE 2-Tempur-Pedic Q4 profit beats Street by a cent