RH RH will release its fourth-quarter financial results, after the closing bell, on Wednesday, April 2.Analysts expect the Corte Madera, California-based company to report quarterly earnings at $1.92 per share, up from 72 cents per share in the year-ago period. RH projects quarterly revenue of $829.56 million, compared to $738.26 million a year earlier, according to data from Benzinga Pro.On Dec. 12, RH reported third-quarter revenue of $811.73 million, missing the consensus estimate of $812.16 million.RH s ...

On this news, RH's stock price fell $15.72 per share, or 3.6%, to close at $418.74 per share on January 24, 2025. Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz cont ...

Core Viewpoint - RH is set to report its fourth-quarter fiscal 2024 results on April 2, following a mixed performance in the third quarter where earnings missed estimates but revenues slightly exceeded expectations, indicating resilience in demand despite economic challenges [1][2]. Financial Performance - In the third quarter of fiscal 2024, RH's earnings missed the Zacks Consensus Estimate by 7.1%, while revenues surpassed expectations by 0.1%, reflecting a year-over-year increase in both metrics [2]. - Total demand growth in the third quarter increased by 13%, with November showing an acceleration to 18% [2]. Earnings Estimates - The Zacks Consensus Estimate for RH's earnings per share (EPS) has risen to $1.91, indicating a substantial growth of 165.3% from the previous year's profit level of $0.72 [3]. - Revenue estimates are pegged at $827.3 million, reflecting a 12.1% increase from the prior year [3]. Market Dynamics - Despite sluggish demand in the luxury home furnishings sector, RH is optimistic about sustaining revenue growth through strategic initiatives, including new product launches and enhanced marketing efforts [4]. - RH estimates capturing 15-25 points of market share in the third quarter and anticipates gaining an additional 25-45 points in the fourth quarter, primarily from premium and mid-tier competitors [6]. Guidance and Expectations - The company expects demand to increase by 20-22% year-over-year in the fourth quarter, leading to revenue growth of 18% to 20%, a significant rise from the 8.1% growth in the third quarter [7]. - RH anticipates gross margins to be impacted by economic pressures, but strategic cost-saving measures are expected to partially offset these challenges [8][9]. Margin Outlook - The adjusted operating margin is projected to be between 12.2% and 13.2%, an increase from 9.1% in the previous year, while the adjusted EBITDA margin is forecasted at 17.2% to 17.4%, up from 15.3% [9]. Earnings Prediction - The model predicts an earnings beat for RH, supported by a positive Earnings ESP of +0.94% and a Zacks Rank of 3 [10][11].

Core Viewpoint - RH is expected to report significant earnings growth and revenue increase in the upcoming quarterly earnings report, with analysts predicting earnings of $1.91 per share, a 165.3% increase year-over-year, and revenues of $827.27 million, reflecting a 12.1% year-over-year growth [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 1.5%, indicating a collective reassessment by analysts of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Key Metrics Projections - Analysts project the 'Number of locations - RH - Total Galleries' to be 69, down from 70 a year ago [5]. - The 'Total leased selling square footage - End of period' is expected to reach 1,508.45 Ksq ft, up from 1,378 Ksq ft last year [6]. - The 'Number of locations - RH - Design Galleries' is estimated at 34, compared to 31 a year ago [6]. - The 'Number of locations - RH - Baby & Child and Teen Galleries' is projected to remain at 3, consistent with the previous year [7]. - The consensus estimate for 'Stores Count - End of period' stands at 88, up from 84 in the same quarter last year [7]. - Analysts suggest that 'Number of locations - RH - Legacy Galleries' will likely reach 30, down from 35 a year ago [8]. - The average prediction for 'Number of locations - Outlets' is 39, compared to 42 last year [8]. Stock Performance - Shares of RH have experienced a decline of 25.8% over the past month, contrasting with a -2.8% change in the Zacks S&P 500 composite [9]. - With a Zacks Rank of 3 (Hold), RH is expected to perform in line with the overall market in the near future [9].

The market expects RH (RH) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended January 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock ...

Company Performance - RH closed at $221.84, reflecting a -1.54% change from the previous session, underperforming the S&P 500's loss of 1.07% [1] - The stock has decreased by 41.07% over the past month, contrasting with the Consumer Staples sector's gain of 4.7% and the S&P 500's loss of 7.03% [1] Upcoming Earnings - Analysts expect RH to report an EPS of $1.90, representing a 163.89% increase year-over-year [2] - Revenue is anticipated to be $826.63 million, indicating an 11.97% increase compared to the same quarter last year [2] Analyst Estimates - Changes in analyst estimates for RH are crucial as they reflect short-term business trends and can influence stock performance [3] - Positive revisions in estimates suggest a favorable outlook on the company's business health and profitability [3] Valuation Metrics - RH has a Forward P/E ratio of 16.34, which is below the industry average of 21.4 [6] - The company has a PEG ratio of 1.63, compared to the Consumer Products - Staples industry's average PEG ratio of 3.45 [6] Industry Context - The Consumer Products - Staples industry, which includes RH, has a Zacks Industry Rank of 147, placing it in the bottom 42% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Kirby McInerney LLP is investigating potential claims against RH regarding possible violations of federal securities laws and other unlawful business practices [1][3]. Financial Performance - A report by Hunterbrook Media claims that RH may be "running out of money," highlighting a cumulative shortfall of $1.4 billion in free cash flow over the last 20 quarters [3]. - The report indicates that RH has consistently failed to meet expectations, which has led to a decline in share price from $434.46 on January 23, 2025, to $418.74 on January 24, 2025, a drop of $15.72 per share [3]. Legal Investigation - The investigation by Kirby McInerney LLP focuses on whether RH and its officers have engaged in unlawful business practices [1]. - The law firm is reaching out to individuals who purchased RH securities to gather information and discuss potential claims [4].

Group 1 - RH's stock closed at $289.48, reflecting a decrease of 0.92% from the previous day, underperforming compared to the S&P 500's gain of 1.12% [1] - Over the last month, RH's shares have decreased by 28.05%, contrasting with the Consumer Staples sector's gain of 6.52% and the S&P 500's loss of 4.13% [1] Group 2 - The upcoming earnings report for RH is projected to show an EPS of $1.90, representing a significant increase of 163.89% year-over-year, with revenue expected to reach $826.63 million, up by 11.97% from the same quarter last year [2] - Recent analyst estimate revisions for RH indicate positive near-term business trends, suggesting a favorable outlook for the company [3] Group 3 - The Zacks Rank system, which evaluates estimate changes, currently ranks RH at 2 (Buy), with the Zacks Consensus EPS estimate having increased by 0.17% in the past month [5] - RH's Forward P/E ratio stands at 21.19, aligning with the industry average, indicating no significant deviation in valuation [6] Group 4 - RH has a PEG ratio of 2.12, which is lower than the average PEG ratio of 2.78 for the Consumer Products - Staples industry, suggesting a more favorable valuation in terms of expected earnings growth [7] - The Consumer Products - Staples industry is currently ranked 143 out of over 250 industries, placing it in the bottom 44%, indicating weaker performance compared to higher-ranked industries [8]

Core Viewpoint - RH has experienced a significant downtrend with an 18.8% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 indicating oversold conditions [2] - RH's current RSI reading is 29.85, suggesting that the heavy selling pressure may be exhausting, indicating a possible price rebound [5] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts to raise earnings estimates for RH, resulting in a 0.2% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [6] - RH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [7]

Group 1 - RH's stock closed at $380.35, reflecting a +1.66% change from the previous day, outperforming the S&P 500's gain of 1.04% [1] - Over the past month, RH's stock has decreased by 12.71%, underperforming compared to the Consumer Staples sector's increase of 5.81% and the S&P 500's increase of 3.92% [1] Group 2 - RH is expected to report an EPS of $1.88, representing a 161.11% increase from the same quarter last year [2] - Revenue is forecasted to be $826.36 million, indicating an 11.93% growth compared to the same quarter last year [2] Group 3 - Recent revisions to analyst forecasts for RH are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [3] - The Zacks Rank system, which incorporates estimate changes, has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [4][5] Group 4 - RH currently holds a Forward P/E ratio of 27.18, which is higher than the industry average of 21.97, suggesting that RH is trading at a premium [6] - The PEG ratio for RH is 2.72, compared to the industry average PEG ratio of 2.5 [6] Group 5 - The Consumer Products - Staples industry, which includes RH, has a Zacks Industry Rank of 145, placing it in the bottom 43% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating the relative weakness of the industry [7]