Tempur Sealy shares jump after earnings beat

Sealy mattress store location
Luke Sharrett | Bloomberg | Getty Images
Sealy mattress store location

Shares of Tempur Sealy climbed more than 7 percent in Thursday early trading after the mattress company released earnings that easily topped analysts' estimates.

Tempur Sealy reported earnings of $1.32 per share, beating Wall Street predictions for $1.21 per share, according to analysts' consensus from Thomson Reuters.

In comparison to its 2015 earnings report, the mattress maker's earnings per share increased 19 percent from $1.11 per share to $1.32 per share, according to a statement released Thursday.

However, the company posted sales of $832 million, short of expectations for $835 million, according to a consensus estimate from Thomson Reuters.

In a press release, CEO Scott Thompson acknowledged both the earnings beat and revenue miss.

"The flexibility of our business model was displayed this quarter as our top line sales were below our original expectations yet we delivered significant margin expansion and 19 percent EPS growth," Thompson said. "We continue to effectively execute on our core strategy to drive our long term operating performance."

In late September, the mattress maker's shares plunged more than 22 percent after handing in a disappointing full-year sales guidance. As a result, the company started cutting cost of sales and overhead expenses to help offset declining sales.

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