NEW YORK (TheStreet) -- Select Comfort (SCSS - Get Report) shares are up 11% to $21.07 in after-hours trading on Wednesday following the release of the company's second quarter earnings results.
The bed manufacturer and retailer reported a 13% year over year quarterly increase in net sales to $235 million, ahead of analysts $223 million estimates. The company earned 16 cents per diluted share during the period, 1 cent better than analysts expectations.
The company also plans to open 30-40 new stores this year, increasing its store total to between 460-470.
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TheStreet Ratings team rates SELECT COMFORT CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SELECT COMFORT CORP (SCSS) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."