Tempur-Pedic International (NYSE: TPX) makes bedding products. Offerings include pillows, mattresses, adjustable beds and cushions. The goods feature a visco-elastic foam technology that was developed by NASA during the 1970s, to help cushion astronauts during liftoff. The company markets its products through furniture and department stores, medical retailers, hospitals and the Internet. They are sold under the brand names TEMPUR and Tempur-Pedic. About a third of Tempur-Pedic's revenue comes from international sales.

The company pleased investors last week, when it reported Q2 EPS of 27 cents and revenues of $238.7 million. Analysts had been looking for 23 cents and $232.9 million. Over the course of the quarter, the firm increased its cash balance by 46.8% and reduced total debt by 6.8%. Management also issued in-line guidance for FY08 results.

Commercialization of technologies developed for the space program has led to a wide variety of interesting and useful products. Among them are the well-publicized offerings of a firm headquartered in Lexington, Kentucky.

Tempur-Pedic International (NYSE: TPX) makes bedding materials, featuring a visco-elastic foam that was designed by NASA to help cushion astronauts during liftoff. Offerings include pillows, mattresses, adjustable beds and cushions. The company markets its products through furniture and department stores, medical retailers, hospitals and the Internet. They are sold under the brand names TEMPUR and Tempur-Pedic. About a third of Tempur-Pedic's revenue comes from international sales.

The company pleased investors last week when it reported Q2 EPS of 39 cents and revenues of $257.6 million. Analysts had been looking for 35 cents and $244 million. Management also guided FY07 EPS to $1.63-$1.66 ($1.56 consensus) and FY07 revenues to $1.065-$1.085 billion ($1.06B consensus). The CEO cited Q1 price increases and additional moves planned for Q3, in discussing the good results and favorable outlook. The company also announced a new $200 million share buyback. The stock popped on the news and is now forming a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.