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Restoration Hardware Expanding; Smith & Wesson Jumps the Gun; A ‘Buy’ for Groupon

Jennifer Carinci
Hot Stock Minute
Restoration Hardware Expanding; Smith & Wesson Jumps the Gun; A ‘Buy’ for Groupon

Here are some stock movers to watch today:

Restoration Hardware (RH) on a tear, up double-digits in pre-market trading. Shares hit an all-time high yesterday before releasing a blockbuster earnings report after the bell. The home furnishings chain earned 6-cents a share versus an expected 4-cents, and upped full-year guidance. Fueling the bullish case, RH is in expansion mode, announcing plans to launch two new businesses --RH Kitchen & Tableware and RH Antiquities. They're also proving that "showrooming" can work for a bricks-and-mortar retailer. The CEO says they're in active discussions to lease thirty sites across the country, including several in the "most prestigious shopping centers in North America."

A miss for Smithfield Foods (SFD). The largest U.S. pork producer fell short of profit estimates but topped on sales figures. Smithfield posted EPS of 21-cents on revenues of $3.32 billion. Consensus estimates were for EPS of 43-cents on revenues of $3.27 billion. And don't expect a conference call. They hung up on that idea due to the pending $4.7 billion takeover deal with China's Shuanghui Group. If approved by Congress, this will be the largest Chinese takeover of an American company. The deal has helped drive up prices of lean hog futures in the commodities pits.

Smith & Wesson (SWHC) shares are on the rise after jumping the gun with a preliminary release of fourth-quarter earnings. It expects quarterly profits of 44-cents a share on revenues of $179 million. And, the gun-maker is projecting record-breaking full-year results. They also announced a $100 million share buyback plan and a debt exchange. The stock has been on a tear, up nearly 40-percent over the last year. President Obama's reelection and the Newtown, Connecticut school shooting in December are widely cited as sales catalysts due to rising fear over gun control. The company will report is full fiscal year and fourth-quarter earnings on June 25th.

Finally, shares of Groupon (GRPN) are seeing a much needed double-digit boost. The daily deals site was upgraded to "buy" from "hold" by analysts at Deutsche Bank.

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