Restoration Hardware earnings for the fourth quarter of 2018 have RH stock falling hard on Friday.
Restoration Hardware (NYSE:RH) reported earnings per share of $3.00 for the fourth quarter of the year. This is an increase over its earnings per share of $1.69 from the same period of the year prior. It also beat out Wall Street’s earnings per share estimate of $2.85 for the quarter, but couldn’t save RH stock.
The Restoration Hardware earnings report also includes revenue of $670.89 million. This is only a slight increase over its revenue of $670.23 million reported in the fourth quarter of 2017. It was also a blow to RH stock by missing analysts’ revenue estimate of $686.60 million for the period.
The Restoration Hardware earnings report for the fourth quarter of 2018 also includes its outlook for 2019. This has the company expecting earnings per share ranging from $8.41 to $9.08. Unfortunately for RH stock, Wall Street is looking for earnings per share of $10.13 in 2019.
Restoration Hardware’s outlook for 2019 also has it expecting revenue between $2.585 billion and $2.635 billion. This is more bad news for RH stock as analysts are estimating revenue of $2.76 billion for the full year of 2019.
Restoration Hardware attributes its low outlook for 2019 to a few different factors. It says that these are “weakness in our core business post the fourth quarter market volatility, the negative trends in the high end housing market, and our continued efforts to edit unprofitable and non-strategic businesses.”
RH stock was down 20% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
