|Bid||123.09 x 1100|
|Ask||123.31 x 900|
|Day's Range||122.40 - 125.00|
|52 Week Range||84.11 - 162.10|
|Beta (3Y Monthly)||1.80|
|PE Ratio (TTM)||20.13|
|Earnings Date||Sep 3, 2019 - Sep 9, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||136.57|
Restoration Hardware (RH) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
In 2018, RH (RH) sourced 39% of its products from China, so the reduced trade tensions appear to come as a relief for the company.
RH’s sales in its core home-furnishings galleries aren’t improving, according to Bank of America Merrill Lynch, which maintained its underperform stock rating in a Monday note. The bearish note is a rare one, with other research analysts putting out upbeat notes following RH’s (RH) fiscal first-quarter earnings report just weeks ago. “One of the key arguments for our underperform rating on RH is that sales growth from RH’s gallery conversion strategy is not materially improving and [Wall Street] continues to overestimate RH’s long-term growth potential,” analysts wrote.
Along with its impressive first-quarter earnings, Williams-Sonoma’s (WSM) compelling offerings and differentiated customer experiences appear to have increased investors' confidence, raising its stock price.
Acquisition synergies, favorable organic volumes and pricing improvement help GMS to post higher earnings and sales in fiscal fourth-quarter 2019.
For 2019, RH’s (RH) management expects its EPS to be in the range of $8.76–$9.27, while its revenue is expected to be between $2.64 billion and $2.66 billion.
RH's (RH) strong first-quarter earnings and investors’ optimism about its sales initiatives appear to have led to a rise in its stock price, which in turn has raised its valuation multiple.
On June 24, RH (RH) was trading at $115.01, implying a rise of 21.2% since its announcement of its first-quarter earnings results on June 12. Despite the surge in its stock price, the company is still trading at a discount of 29.1% to its 52-week high.
Home Depot's (HD) integrated retail strategy, which encompasses digital properties and physical stores, is one of its key drivers. Strength in Pro and DIY categories also bodes well.
Ignoring the market jitters and speculations, a few stocks have managed to score 10% or more in a month. So, picking up stocks from the space will be a prudent move.
RH shares have leapt almost 36% for the month to date after earnings beat expectations and the home retailer said the new Beach House collection is showing promise. RH reported fiscal first quarter net income of $35.7 million, or $1.43 per share, up from $25.5 million, or $1.01 cents per share, last year. Adjusted EPS of $1.85 blew past the FactSet consensus of $1.53. Revenue of $598.4 million was ahead of the $557.4 million reported last year and the FactSet estimate of $584.0 million. The company now expects fiscal 2019 adjusted EPS of $8.76 to $9.27, up from previous guidance for $8.05 to $8.69. "The top line is the primary story for Q1 in our opinion," wrote Stifel analysts in a note. Stifel rates RH shares buy with a $140 price target. "Confidence in underlying trends as well as new product lines such as RH Beach House led the company to materially raise full-year guidance by more than the Q1 beat," wrote Wedbush analysts, who rate RH stock outperform with a $160 price target. About 70% of the RH Beach House collection is new products. And Cowen analysts note that RH Chief Executive Gary Friedman seems pleased with the early indications on the collection's book. "We believe RH is redefining the $143 billion U.S. home furnishing market by using its scale and unique lifestyle approach to offer superior quality product at value unmatched by competitors," said Cowen. Analysts there maintain their market perform stock rating with a $120 price target. RH is up 2.2% in Tuesday trading, and down 3.5% for the year to date. The S&P 500 index is up 16.6% for the year to date.
Right now, the Fed has to be worried about how much inflation the next round of tariffs is going to cause versus how much the tariffs will hurt our growth.
RH (RH) today announced it has repaid the balance of its $350 million in 0.00% Convertible Senior Notes due 2019 at maturity. The Company used existing cash balances and borrowings under its revolving credit facility to complete the repayment on June 17, 2019 as expected.
Williams-Sonoma's (WSM) business is benefiting from improved e-commerce platform. However, higher costs and inflation pose risks.