Ahead of the Bell: Tempur-Pedic shares rise

NEW YORK (AP) — Shares of Tempur-Pedic International Inc. rose in premarket trading Friday after the mattress maker reported second-quarter earnings above analysts' estimates.

The stock advanced 96 cents, or 7.4 percent, to $14 ahead of the market open. Shares have traded in a 52-week range of $3.84 to $15.50.

Late Thursday, the Lexington, Ky.-based company reported a profit of 22 cents per share, topping the 18 cents per share expected by analysts polled by Thomson Reuters.

Revenue fell 22 percent to $185.2 million, but beat Wall Street's $172.8 million forecast.

Bradley Thomas of KeyBanc Capital Markets boosted his share price target to $16 from $15, saying in a client note that the company "is positioned for strong gross margin improvement through the remainder of the year, with further upside potential should sales initiatives continue to benefit the top line."

Thomas reaffirmed a "Buy" rating.

Keith Hughes, an analyst with SunTrust Robinson Humphrey, said the company's results were better than expected. He maintained a "Neutral" rating.