Market Overview

Restoration Hardware Earnings Preview: Crowd More Bullish Than Experts & Management


Shares of Restoration Hardware Holdings Inc (NYSE: RH) were rising on Wednesday, ahead of the announcement of the company’s first quarter financial results scheduled for Thursday afternoon.

The company guided a 5.5 percent year-over-year increase in earnings, from $0.18 per share reported in the same quarter last year, to $0.19 per share expected for this quarter. On the revenue front, the surge is expected to reach almost 14 percent, as management guided sales of $417.5 million.

According to Estimize, experts pretty much agree with management, and guided earnings only a cent above guidance, at $0.20 per share, on revenue of $418.95 million.

However, the crowd is considerably more bullish, and projects consensus earnings of $0.28 per share, up 55 percent year-over-year, on revenue of $434.79 million. It should be noted, however, that the consensus here was pushed slightly upwards by two outliers -- see scatter plot.

Two more things should be observed in the chart above: The company has a history of either meeting or surpassing estimates and guidance, and current consensus implies a steep decline from earnings of $0.64 per share reported in the first quarter of 2013.

Related Link: Analyst: Restoration Hardware To Add Kids' Stuff

New Businesses

A couple of months ago, Restoration Hardware announced it would launch two new businesses. Although the details were scarce, Stifel's David A. Schick said one might involve baby and children's products.

"The other may be bigger," the expert added, despite being able to offer little further insight, and to note merely "the absence of talk of art gallery or apparel."

Latest Ratings for RH

Apr 2019MaintainsBuyBuy
Mar 2019MaintainsOutperformOutperform
Mar 2019MaintainsNeutralNeutral

View More Analyst Ratings for RH
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Posted-In: David A. Schick EstimizeAnalyst Color Previews Crowdsourcing Analyst Ratings Trading Ideas General


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