RH (NYSE:RH) Posts Quarterly Earnings Results, Misses Expectations By $0.29 EPS

Key Points

• RH reported an EPS of $2.93, missing analysts' estimates of $3.18 by $0.25.
• The company's shares traded down to $227.94, significantly lower than its 52-week high of $457.26.
• Institutional investors own 90.17% of RH's stock, indicating strong institutional support despite the earnings miss.

RH (NYSE:RH - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $2.93 EPS for the quarter, missing the consensus estimate of $3.22 by ($0.29), Zacks reports. RH had a net margin of 2.57% and a negative return on equity of 67.71%. During the same quarter in the prior year, the company earned $1.69 EPS. The business's quarterly revenue was up 8.4% on a year-over-year basis. RH updated its Q3 2025 guidance to EPS and its FY 2025 guidance to EPS.

RH Price Performance

RH stock traded down $0.99 during midday trading on Thursday, reaching $227.94. The company had a trading volume of 2,970,401 shares, compared to its average volume of 1,298,599. RH has a 12-month low of $123.03 and a 12-month high of $457.26. The firm's fifty day simple moving average is $218.13 and its 200-day simple moving average is $210.04. The company has a market capitalization of $4.27 billion, a P/E ratio of 54.27, a P/E/G ratio of 0.67 and a beta of 2.15.

Institutional Investors Weigh In On RH

A number of large investors have recently made changes to their positions in RH. Quantinno Capital Management LP boosted its stake in RH by 8.2% during the second quarter. Quantinno Capital Management LP now owns 2,455 shares of the company's stock worth $464,000 after buying an additional 186 shares during the period. Treasurer of the State of North Carolina grew its stake in shares of RH by 3.2% in the second quarter. Treasurer of the State of North Carolina now owns 7,136 shares of the company's stock valued at $1,349,000 after buying an additional 220 shares in the last quarter. Federated Hermes Inc. raised its holdings in shares of RH by 30.1% in the 2nd quarter. Federated Hermes Inc. now owns 1,137 shares of the company's stock valued at $215,000 after buying an additional 263 shares during the period. Prudential Financial Inc. lifted its stake in RH by 24.4% during the 2nd quarter. Prudential Financial Inc. now owns 1,593 shares of the company's stock worth $301,000 after acquiring an additional 312 shares in the last quarter. Finally, Tower Research Capital LLC TRC boosted its holdings in RH by 90.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,056 shares of the company's stock valued at $200,000 after acquiring an additional 501 shares during the period. 90.17% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

RH has been the subject of several research reports. Wells Fargo & Company boosted their price objective on shares of RH from $275.00 to $295.00 and gave the company an "overweight" rating in a research report on Monday. Bank of America raised their target price on shares of RH from $144.00 to $172.00 and gave the company an "underperform" rating in a research note on Wednesday, May 14th. Guggenheim reaffirmed a "buy" rating and set a $300.00 target price on shares of RH in a research report on Wednesday, July 2nd. UBS Group dropped their price target on RH from $235.00 to $215.00 and set a "neutral" rating on the stock in a research note on Thursday, June 5th. Finally, Zelman & Associates decreased their price target on shares of RH from $305.00 to $251.00 and set an "outperform" rating for the company in a report on Wednesday, July 9th. Ten research analysts have rated the stock with a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $273.47.

RH Company Profile

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany.