Restoration Hardware Holdings Earnings: Here’s Why Investors are Happy Now

Restoration Hardware Holdings Inc (NYSE:RH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 7.48%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Restoration Hardware Holdings Inc Earnings Cheat Sheet

Results:

Revenue: Rose 30.42% to $398.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.64 per share. By that measure, the company beat the mean analyst estimate of $0.6. It beat the average revenue estimate of $390.86 million.

Quoting Management: Carlos Alberini, Chief Executive Officer, said, “We are very pleased with our fourth quarter performance and record financial results. We increased net revenues by 30% for the period on top of 19% growth last year, delivering our 12th consecutive quarter of double-digit net revenue growth. Our 24% adjusted net income increase for the period contributed to the Company’s best year ever.” Mr. Alberini continued, “We are well positioned to continue to gain market share and further disrupt the highly fragmented home furnishings marketplace. We have a powerful business model, have made investments to support future growth, and remain confident that we will continue to drive operating margin expansion in the future.”

Key Stats (on next page)…

Revenue increased 40.09% from $284.17 million in the previous quarter. EPS increased 814.29% from $0.07 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.04 and has not changed. For the current year, the average estimate is a profit of $1.03, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)