NEW YORK (TheStreet) -- Mattress Firm (MFRM) shares are climbing, up 13.9% to $54.70 on Monday, after the company reported a 35.5% increase in preliminary second quarter net sales to $410 million.
The increase in net sales led the company to increase its second quarter and full year adjusted earnings guidance ahead of analysts expectations to between $0.58 and $0.61 per diluted share, and between $2.03 and 2.13, respectively.
Analysts are expecting second quarter earnings of 49 cents per diluted share and full year earnings of $1.95 per diluted share.
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The company reports its second quarter results on September 5.
TheStreet Ratings team rates MATTRESS FIRM HOLDING CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MATTRESS FIRM HOLDING CORP (MFRM) 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, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and weak operating cash flow."