Luxury furniture retailer RH (NYSE: RH) will be announcing earnings results this Thursday after market hours. Here’s what to expect.
RH missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $814 million, up 12% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
Is RH a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting RH’s revenue to grow 8.8% year on year to $903 million, improving from the 3.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.22 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RH has missed Wall Street’s revenue estimates six times over the last two years.
Looking at RH’s peers in the home furniture retailer segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Arhaus delivered year-on-year revenue growth of 15.7%, beating analysts’ expectations by 7.4%, and Williams-Sonoma reported revenues up 2.7%, in line with consensus estimates. Arhaus traded up 13.5% following the results while Williams-Sonoma was down 5%.
Read our full analysis of Arhaus’s results here and Williams-Sonoma’s results here.
There has been positive sentiment among investors in the home furniture retailer segment, with share prices up 8.1% on average over the last month. RH is up 8.9% during the same time and is heading into earnings with an average analyst price target of $262.25 (compared to the current share price of $234).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
