uploads///dining room _

RH Tops Analysts’ Revenue and EPS Expectations in Q3 2018

By

Dec. 4 2018, Updated 3:25 p.m. ET

Third-quarter performance

RH (RH) posted its third-quarter earnings results after the market closed on December 3. For the quarter that ended on November 3, the company posted adjusted EPS of $1.73 on revenue of $638.5 million.

Year-over-year, the company’s revenue rose 7.8%, while its adjusted EPS rose 66.3%.

Article continues below advertisement

Stock performance

During the quarter, RH beat analysts’ EPS estimate of $1.27 by 36.2% and outperformed analysts’ revenue expectation of $632.2 million by 1.0%. The company’s comparable brand revenue growth stood at 4.0% in the quarter. Also, its management claimed that tariff-related shipping congestion in China had resulted in the slower shipment of special orders, negatively affecting the company’s revenue and comparable brand revenue growth by 1.0%.

However, RH’s management expects the delayed receipts to positively affect its fourth-quarter revenue, and the company has raised its revenue and EPS expectations for the quarter. The company’s strong third-quarter results and its raising of its fourth-quarter earnings guidance appear to have led to a rise in its stock price. RH was trading 19.3% higher in after-market trading hours on December 3.

Year-to-date performance

At the end of the day on December 3, RH was trading at $123.65, a rise of 43.5% YTD (year-to-date). Its peers Williams-Sonoma (WSM) and Bed Bath & Beyond (BBBY) have returned 13.6% and -40%, respectively, YTD. The broader comparative index, the SPDR S&P Homebuilders ETF (XHB), which invests ~9.5% of its holdings in home furnishing and furniture companies, has fallen 18.5% YTD. Next, we’ll look at RH’s revenue in the third quarter.

Advertisement

More From Market Realist

  • A "now hiring" sign outside a Popeyes restaurant, one sign that employers are having trouble finding employees willing to work for current wages.
    Consumer
    Why Employers Are Struggling To Fill Jobs Despite High Unemployment
  • Beyond Meat patties in a grocery cart
    Consumer
    Buying the Dip on Beyond Meat (BYND) Stock Is a Risky Move
  • People looking at data on a laptop
    Consumer
    Is Driven Brands (DRVN) a Good Stock to Buy? A Look at the Year Ahead
  • A Moscow Mule drink made with Reed's
    Consumer
    Is Reed's (REED) a Good Stock to Buy? A Look at the Year Ahead
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.