NEW YORK (TheStreet) -- Shares of Select Comfort Corp. (SCSS) are higher by 7.64% to $20.43 on heavy volume in mid-morning trading on Thursday after the company reported earnings per diluted share for the 2014 second quarter were 16 cents, beating analysts' expectations of 14 cents per share.
The bed manufacturer and retailer posted a 13% increase in net sales to $235 million, compared to the Zacks consensus estimate of $224 million.
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"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."
Separately, 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:
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