3 Stocks to Watch on Thursday: RH (RH), Verint Systems Inc. (VRNT) and Yext Inc (YEXT)

Earnings were on tap for RH, VRNT and YEXT

U.S. equities edged higher on Wednesday as treasury bonds declined, gold lost 0.4% and oil was 1.5% higher. The S&P 500 IndexDow Jones Industrial Average and Nasdaq Composite each gained about 0.3% by day’s end.

3 Stocks to Watch on Thursday: RH (RH), Verint Systems Inc. (VRNT) and Yext Inc (YEXT)RH (NYSE:RH), Verint Systems Inc. (NASDAQ:VRNT) and Yext Inc (NYSE:YEXT) dominated the late-day earnings news as all three companies reported after the bell.

Here’s what you should know:

RH (RH)

Restoration Hardware stock was soaring after the company unveiled its latest quarterly data.

In its earnings call, the company reported a second-quarter loss of $7.9 million, or 28 cents per share.

On an adjusted basis, the company’s profit amounted to 65 cents per share. Wall Street called for adjusted earnings of 47 cents per share, based on data compiled by FactSet.

Restoration Hardware’s revenue was ahead of the mark too at $615.3 million for the period, while analysts predicted sales of $606.4 million. The figure was 13.23% better than the company’s year-ago revenue.

“While we continue to expect strong revenue growth, expanding operating margins, and significant free cash flow in the second half of fiscal 2017, we are taking a cautiously optimistic approach to our outlook given the uncertain macro environment in addition to the many initiatives and investments we are undertaking,” Gary Friedman, RH chairman and CEO, said in the earnings call.

For its third quarter, the company’s guidance calls for adjusted earnings in the range of $70 million to $77 million, while analysts see Restoration Hardware’s adjusted earnings closer to $59.2 million.

Revenue is slated to fall between $2.42 billion and $2.46 billion, the company adds. Wall Street’s consensus estimate is in line with this revenue outlook at $2.44 billion.

RH shares skyrocketed 36% higher after hours.

Verint Systems Inc. (VRNT)

Verint Systems had a profitable quarter that was ahead of the mark.

The company’s second quarter yielded strong profit of roughly 61 cents per share on an adjusted basis, which beat analysts’ average earnings projection 47 cents per share.

Verint Systems’ earnings call included better revenue than expected as well, at $274.77 million. Wall Street’s consensus estimate predicted revenue of about $270.1 million.

On a gloomier note, the company announced the death of Victor DeMarines, who was Verint Systems’ chairman of the board of directors. He had served in the role since February 2013 and passed away on Aug. 30 of this year.

DeMarines first arrived at the company in 2002, before it went public. He was voted into the role of chairman unanimously.

Current Director Dan Bodner will serve as the new chairman. “In my role as chairman, I will continue to focus on Verint’s growth strategy and on creating value for our shareholders,” Bodner said.

VRNT stock boomed 5.8% after the bell Wednesday.

Yext Inc (YEXT)

Yext shares wafted slightly higher late Wednesday despite the company’s earnings miss.

For its second quarter of the current fiscal year, the company posted a loss of 18 cents per share, which is wider than analysts’ projection of a 14-cent loss. On an adjusted basis, Yext lost 13 cents per share.

The company attributed the loss to increased operating expenses, mostly in the sales and marketing areas as the company has been investing in its quest to acquire new customers.

Yext’s revenue served as a bright spot over the three months at $40.8 million. Wall Street was calling for revenue of $40.2 million.

Its third-quarter earnings are expected to come at a loss of 13 cents per share, while revenue is slated to be between $43.5 million and $44 million.

For the fiscal year 2018, Yext projects a loss in the range of 50 cents to 52 cents per share on revenue of $169.5 million to $170.5 million.

YEXT stock edged 0.1% higher after the market closed yesterday.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/09/stocks-watch-thursday-rh-rh-verint-systems-inc-vrnt-yext-inc-yext/.

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