Can Restoration Hardware’s (RH) Quarterly Report Win Back Wall Street?

What's Happening With RH View more about RH >

Restoration Hardware (RH) reports Q1 earnings June 12. The company will report its quarterly numbers after the market close with the consensus calling for earnings of $1.54 per share on revenue of $583.5 million, up from $1.33 and $557.4 million during the same period last year. RH stock has fallen 25.4% on the year.

Technical Analysis

RH was recently trading at $89.42 down $75.07 from its 12-month high and $5.31 above its 12-month low. InvestorsObserver’s Stock Score Report gives RH a 16 long-term technical score and a 36 short-term technical score. The stock has recent support above $84 and recent resistance below $100. Of the 14 analysts who cover the stock 6 rate it Strong Buy, 0 rate it Buy, 7 rate it Hold, 1 rate it Sell, and 0 rate it Strong Sell, RH gets a score of 46 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

RH stock has been in a strong downward trend since the company’s last quarterly report in March. Last quarter saw a positive earnings surprise, but a big top-line miss that rattled investors and sent shares sharply lower. The selling accelerated as weakness hit the overall market in May and shares remain just above their 52-week low ahead of the upcoming quarterly report. Not only did revenues disappoint last quarter, but the company’s full year guidance range of $8.41 to $9.08 was well below the street’s forecast $10.13 for 2019. The disappointing forecast has already been priced into the stock which currently trades at 9.4 times future earnings so the downside from this point should be limited and there is a good chance for a rally if results are able to impress the market and the company issues more optimistic guidance. The street expects an earnings beat with a whisper number of $1.61, but traders will pay close attention to the company’s guidance range which will determine whether or not the stock is able to erase some of its recent losses, or continue to trade around its current level into the summer months.

RH
About RH

RH is a luxury retailer operating in the $121 billion furniture and home furnishing industry. The company offers merchandise across many categories including furniture, lighting, textiles, bath, decor, children, and more and is growing the presence of its hospitality business (with six locations). RH innovates, curates, and integrates products, categories, services, and businesses across channels and brand extensions (RH Teen, RH Modern, and Waterworks, for example). The company is fully integrated across store, Web, and catalog channels, with 44% of sales from the direct-to-consumer channel.

  • Last Price:
    $173.63
  • Previous Close:
    $169.12
  • Change:
    $4.51 (2.67%)
  • Open:
    $166.98
  • Volume:
    2,501,853
  • Average Volume (100 Day):
    938,996
  • Market Capitalization:
    $3.2 B
  • Day's Range:
    $165.14 - $174.41
  • Dividend Yield:
    0.00%
  • 52-week Range:
    $173 - $84.11
  • P-E:
    25.60
  • EPS:
    $6.51
  • Earnings Date:
    12/2/19
  • Ex Dividend Date:
    N/A
  • Sector:
    Consumer Cyclical
  • Industry:
    Specialty Retail
  • Analyst Average Recommendation:
    Moderate Buy

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