RH Stock Soars 17% On Upbeat Guidance

12/13/2024 10:13:01 AM

(MENAFN- Baystreet) The stock of high-end home furnishing retailer RH (RH) is up 17% after the company issued upbeat forward guidance.

The California-based company formerly known as Restoration Hardware reported third-quarter earnings per share (EPS) of $2.48 U.S., which was below the $2.66 U.S. expected on Wall Street.

Revenue totaled $812.73 million U.S., which was slightly ahead of analyst estimates that called for $812.50 million U.S. Sales were up 8% from a year earlier.

RH also reported that it had negative free cash flow of -$95.99 million U.S. at the end of this year's third quarter. That's down from $17.57 million U.S. in the same quarter of 2023.

While the latest results were mixed, the company raised its forward guidance, leading to a sharp rise in its share price.

RH said it expects 7% year-over-year revenue growth for the full year, as well as a 17.3% operating margin.

At the same time, the company reported that its current operating margin is 12.5%, up from 6.8% in the same quarter of 2023.

Analysts and investors seem to like what they heard in terms of the outlook from the company that specializes in high-end furniture and home décor.

Before today (Dec. 13), RH stock had risen 33% year-to-date and was trading at $381.38 U.S. per share.

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