Why Tempur Sealy (TPX) Stock Is Gaining In After-Market Trading

NEW YORK (TheStreet) -- Tempur Sealy (TPX) shares are climbing, up 1.9% to $51.50, in after-market trading on Thursday following the release of the company's first quarter earnings results. 

Total net sales for the company increased 80% from the year ago period to $701.9 million, beating analysts estimates of $683.3 million.

The worlds largest bedding provider reported adjusted net income of $38.2 million, or 53 cents per diluted share, beating analysts estimates by 1 cent.

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TheStreet Ratings team rates TEMPUR SEALY INTL INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate TEMPUR SEALY INTL INC (TPX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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