Tempur Sealy International Inc (NYSE:TPX) on July 28, 2016 announced financial results for the second quarter ended June 30, 2016. The Company also updated financial guidance for the full year 2016.

Business Segment Highlights

The Company’s business segments include North America and International. Corporate operating expenses are not included in either of the business segments and are presented separately as a reconciling item to consolidated results.

North America net sales increased 6.0% to $668.2 million from $630.3 million in the second quarter of 2015. On a constant currency basis North America net sales increased 6.4% driven by the success of new products and expanded distribution. GAAP gross margin was 40.0% as compared to 36.1% in the second quarter of 2015. GAAP operating margin was 15.5% as compared to 10.2% in the second quarter of 2015, driven primarily by gross margin improvement.

North America adjusted gross margin improved 340 basis points to 40.0% as compared to 36.6% in the second quarter of 2015. Gross margin and adjusted gross margin improvements were primarily driven by operational improvements, pricing actions and product mix. These factors were slightly offset by new product launch costs. The increase in North America gross margin and adjusted gross margin as well as an improvement in the Company’s operating leverage drove a 430 basis point increase in the Company’s North America adjusted operating margin(1) to 15.5% as compared to 11.2% in the second quarter of 2015.

International net sales increased 1.6% to $136.2 million from $134.1 million in the second quarter of 2015. On a constant currency basis, International net sales increased 7.6%. GAAP gross margin was 51.1% as compared to 52.3% in the second quarter of 2015. GAAP operating margin was 17.0% as compared to 17.7% in the second quarter 2015, driven primarily by the decrease in gross margin.

International adjusted gross margin declined 120 basis points to 51.1% as compared to 52.3% in the second quarter of 2015. The decrease in gross margin and adjusted gross margin was primarily driven by costs associated with new product introductions and product mix. These factors were slightly offset by an improvement in channel mix. The decrease in International gross margin and adjusted gross margin drove a 110 basis point decrease in the Company’s International adjusted operating margin to 17.0% as compared to 18.1% in the second quarter of 2015.

Shares of Tempur Sealy International Inc (NYSE:TPX) jumped 16.80% to reach at $74.04 during the course of session. The company has experienced volume of 9.64M shares while on average the company has a capacity of trading 1.44M shares. The stock holds the market capitalization of $4.54B along with 60.92M outstanding shares. The stock traded in the price range of $71.17 – $74.94 for the last trading session. For the stock price target value has been calculated at $80.67 based on calls of 9 experts. Stock’s minimum price target estimates has been figured out at $58.00 while the maximum price target forecast is established at $95.00.

As of current trade, Tempur Sealy International Inc (NYSE:TPX) has shown weekly upbeat performance of 23.13%. Its six months performance indicated a bullish movement while its yearly performance reflected a positive trend of 4.06%. Year-to-date (YTD) performance of the stock illustrate upbeat trend of 5.08%. Shares of Tempur Sealy International Inc (NYSE:TPX) currently have an ABR of 1.88, derived from a total of 8 opinions. The company’s price sits 26.22% above from its 50-day moving average of $58.72 and 15.79% above from the stock’s 200-day moving average of $58.86. The company has Relative Strength Index (RSI 14) of 83.78 along with Average True Range (ATR 14) of 2.52. Its weekly and monthly volatility is 3.20%, 3.02% respectively. The company’s beta value is at 1.88.

Tempur Sealy International Inc (NYSE:TPX)’s price to sales ratio for trailing twelve months is 1.47 and price to book ratio for most recent quarter is 18.19, whereas price to cash per share for the most recent quarter is 123.73. Tempur Sealy International Inc (NYSE:TPX)’s price to free cash flow for trailing twelve months is 28.93. Its quick ratio for most recent quarter is 5.83 along with current ratio for most recent quarter of 5.13. Total debt to equity ratio of the company for most recent quarter is 5.83 whereas long term debt to equity ratio for most recent quarter is 5.13. Tempur Sealy International Inc (NYSE:TPX) has a Return on Assets of 3.40%. The company currently has a Return on Equity of 32.80% and Return on Investment of 10.50%.