NEW YORK (TheStreet) -- Shares of Tempur Sealy (TPX) - Get Report were plunging 25.86% to $55.20 in after-hours trading on Tuesday after the company said it expects its third-quarter sales to be below its previous projections.
Additionally, the Lexington, KY-based mattress retailer now forecasts that its full-year sales will drop 1% to 3% year-over-year.
In 2015, Tempur Sealy reported revenue of $880 million. Analysts are looking for revenue of $911 million for 2016.
The company also reduced its full-year outlook for adjusted EBITDA to be between $500 million and $525 million vs. its prior view of $525 million to $550 million.
Tempur Sealy will report its 2016 third quarter results on October 27.
More than 1.3 million of the company's shares traded hands today vs. its 30-day average volume of about 831,000 shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.
The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: TPX