Restoration Hardware (RH) Tops Q4 Earnings Estimates, Stock Pops

Restoration Hardware RH just released its fourth quarter and full-year 2017 financial results, posting adjusted earnings of $1.69 per share and revenues of $670.29 million.

Restoration Hardware shares have skyrocketed 114% over the last year and RH is currently a Zacks Rank #2 (Buy)—which could change based on today’s results. However, shares of RH had sunk 9% over the last four weeks and more than 4% on Tuesday in the lead up to its Q4 earnings release, to hover well below its 52-week high of roughly $105 per share.

The stock is currently up over 6% to $79.85 per share in after-hours trading shortly after its earnings report was released.

RH:

Beat earnings estimates. The company posted adjusted earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.56 per share.

Missed revenue estimates. The company saw revenue figures of $ 670.29 million, missing our consensus estimate of $671.49 million.

Restoration Hardware’s revenues jumped from $586.7 million in the year-ago period. The company’s adjusted earnings per share skyrocketed 149%.

Looking ahead to fiscal 2018, Restoration Hardware expects to report revenues in the range of $2.53 billion and $2.57 billion, which falls below our current estimate of $2.60 billion.

RH also expects to post adjusted earnings per share between $5.45 and $6.20. This updated bottom-line estimate compares favorable against our current earnings estimates of $5.49 per share.

Here’s a graph that looks at RH’s Price, Consensus and EPS Surprise history:

Restoration Hardware Holdings Inc. Price, Consensus and EPS Surprise

Restoration Hardware Holdings Inc. Price, Consensus and EPS Surprise | Restoration Hardware Holdings Inc. Quote

Restoration Hardware is a luxury brand in the home furnishings marketplace, offering product assortments across a number of categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, as well as baby and child products.

Check back later for our full analysis on RH’s earnings report!

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Restoration Hardware Holdings Inc. (RH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research