NEW YORK (TheStreet) -- Shares of Tempur Sealy (TPX) - Get Report are jumping 16.74% to $74 in late morning trading today after the bedding company posted better-than-expected second quarter results before Thursday's opening bell.
Tempur Sealy reported adjusted earnings of 92 cents per share, surpassing analysts projected 69 cents per share. Revenue rose 5.2% to $804 million, exceeding analysts expectations of $785.4 million.
Last year, the company posted earnings of 53 cents per share on revenue of $764.4 million for the second quarter.
Operating income grew 93% year-over-year in the second quarter, as the company aims to further cut costs.
"Adjusted EBITDA and gross margins have increased for the third consecutive quarter, adjusted EPS is up 74%," said Tempur Sealy CEO Scott Thompson. "We are improving operating leverage, continuing to invest heavily in our brands, expanding distribution, and successfully servicing our retailers and direct consumers."
Additionally, Tempur Sealy raised its full year earnings guidance to range from $525 million to $550 million.
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 has this to say about the recommendation:
We rate TEMPUR SEALY INTL INC as a Buy with a ratings score of B-. 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 increase in net income, expanding profit margins, growth in earnings per share and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: TPX