RH (NYSE:RH) Shares Gap Up on Better-Than-Expected Earnings

RH (NYSE:RH) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $176.87, but opened at $211.00. RH shares last traded at $198.77, with a volume of 2,607,583 shares trading hands.

The company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.20. The firm had revenue of $813.95 million for the quarter, compared to the consensus estimate of $817.66 million. RH had a negative return on equity of 35.72% and a net margin of 2.25%. The business’s quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.40) earnings per share.

Wall Street Analysts Forecast Growth

RH has been the topic of several analyst reports. The Goldman Sachs Group decreased their price target on RH from $276.00 to $194.00 and set a “neutral” rating on the stock in a research report on Monday, May 5th. Barclays decreased their target price on shares of RH from $515.00 to $436.00 and set an “overweight” rating on the stock in a report on Thursday, April 3rd. Wall Street Zen upgraded shares of RH from a “sell” rating to a “hold” rating in a research note on Thursday, May 22nd. Telsey Advisory Group cut their price target on shares of RH from $280.00 to $255.00 and set an “outperform” rating for the company in a report on Monday. Finally, Guggenheim decreased their price target on shares of RH from $500.00 to $300.00 and set a “buy” rating on the stock in a report on Thursday, April 3rd. Two investment analysts have rated the stock with a sell rating, six have assigned a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, RH presently has an average rating of “Hold” and an average price target of $270.00.

Institutional Investors Weigh In On RH

Hedge funds have recently added to or reduced their stakes in the company. FMR LLC raised its holdings in shares of RH by 0.7% during the 4th quarter. FMR LLC now owns 2,790,314 shares of the company’s stock valued at $1,098,240,000 after buying an additional 18,040 shares in the last quarter. Vanguard Group Inc. boosted its stake in RH by 0.6% in the first quarter. Vanguard Group Inc. now owns 1,409,962 shares of the company’s stock worth $330,509,000 after buying an additional 7,952 shares in the last quarter. Anomaly Capital Management LP grew its position in RH by 9.6% during the fourth quarter. Anomaly Capital Management LP now owns 481,111 shares of the company’s stock valued at $189,360,000 after acquiring an additional 41,986 shares during the last quarter. Atreides Management LP raised its stake in shares of RH by 69.1% during the first quarter. Atreides Management LP now owns 473,321 shares of the company’s stock worth $110,951,000 after acquiring an additional 193,404 shares in the last quarter. Finally, Alliancebernstein L.P. raised its stake in shares of RH by 1,960.8% during the fourth quarter. Alliancebernstein L.P. now owns 363,698 shares of the company’s stock worth $143,148,000 after acquiring an additional 346,050 shares in the last quarter. Institutional investors own 90.17% of the company’s stock.

RH Trading Up 12.8%

The stock has a market capitalization of $3.74 billion, a P/E ratio of 57.00, a price-to-earnings-growth ratio of 2.65 and a beta of 2.19. The stock’s fifty day moving average price is $183.54 and its two-hundred day moving average price is $295.15.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany.