Restoration Hardware Holdings, Inc Stock Skyrockets on Earnings Beat

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Restoration Hardware Holdings, Inc (NYSE:RH) stock was soaring after hours Monday as the company unveiled its latest quarterly earnings results, which came in well ahead of expectations.

Restoration Hardware Holdings, IncFor its first quarter of the current fiscal year, the home improvement company unveiled net income of $28.1 million, or $1.11 per share, compared to its year-ago loss of $3.4 million, or 9 cents per share. On an adjusted basis, the company brought in earnings of $33.5 million, or $1.33 per share, ahead of its year-ago total of $1.8 million, or 5 cents per share.

Analysts were calling for Restoration Hardware to bring in adjusted earnings of $1.01 per share, according to data compiled by FactSet. On the revenue front, the company’s sales fell roughly 0.8% compared to the year-ago quarter to $557 million from $562 million.

However, the figure was still ahead of the mark as Wall Street’s consensus estimate projected revenue of $563 million for the period, according to data compiled by FactSet. “We articulated at the beginning of the year that we will be managing the business with a bias for earnings versus revenue growth in fiscal 2018,” the company said in a statement.

“We will restrain ourselves from chasing low-quality sales at the expense of profitability like many in our industry, and instead focus on building an operating platform that will enable us to compete and win over the long term.”

Restoration Hardware added that it sees its full-year revenue to be in the range of $2.53 billion and $2.57 billion, while adjusted earnings will be between $6.34 to $6.83 per share. For its second quarter, the company predicts revenue between $655 million and $662 million, and adjusted earnings between $1.70 and $1.77.

RH stock gained about 17.7% after the bell Monday.


Article printed from InvestorPlace Media, https://investorplace.com/2018/06/restoration-hardware-holdings-inc-rh/.

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