LEXINGTON, Ky. (AP) -- Mattress and pillow maker Tempur-Pedic International Inc. said its fourth-quarter net income jumped 22 percent on higher mattress sales and revenue from overseas. The results beat expectations and sent shares higher in aftermarket trading.
The company also said Tuesday that it authorized a $250 million share buyback program and Tempur-Pedic set its 2012 outlook above analyst expectations.
Shares of the company rose $2.14, or 3.4 percent, to $64.39 in aftermarket trading after the company reported its results. During regular trading, they climbed $1.76, or 3 percent, and closed at $62.25.
Tempur-Pedic said that during the quarter that ended Dec. 31 its net income was $56.3 million, or 84 cents per share, compared to $46.3 million, or 66 cents per share, during the same period last year.
Revenue during the quarter was $366.8 million, up from $292.7 million a year earlier.
The results beat analyst expectations for net income of 82 cents per share on $363.1 million in revenue, according to FactSet.
Revenue during the quarter was boosted by demand for mattresses, particularly in international markets. The company said overall mattress sales were up 26 percent. U.S. sales rose 24 percent while international sales jumped 33 percent. When adjusted for currency changes, international mattress sales were up 29 percent.
Pillow sales, by contrast, rose 16 percent, with U.S. sales rising 15 percent and international sales rising 17 percent. International pillow sales were up 13 percent after accounting for currency fluctuations.
For the full year, the company reported net income of $219.6 million, or $3.18 per share, compared to $157.1 million, or $2.16 per share, during the prior year period. Revenue for the year was $1.42 billion, compared to $1.11 billion the year before.
The full-year results also beat expectations, with analysts looking for net income of $3.16 per share on $1.41 billion in revenue.
CEO Mark Sarvary said the company will boost its investment this year to drive new product launches and increase advertising. He also said Sarvary planned to boost its distribution network, and the company is predicting that 2012 sales will be about 13 percent to 16 percent higher than last year's.
The company said it expects to earn between $3.80 per share and $3.95 per share during 2012. It said revenue should be between $1.6 billion to $1.65 billion.
Analysts are expecting $3.77 per share in net income on $1.59 billion in revenue.
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