RH (NYSE:RH) Shares Gap Down Following Weak Earnings

Key Points

• RH shares fell sharply after the company reported earnings of $2.93 EPS, missing analysts' expectations of $3.22 EPS and showing revenues of $899.15 million, which was below the estimated $906.58 million.
• The stock opened at $218.18, down from a previous close of $228.12, and last traded at $225.10 amid a trading volume of over 1.3 million shares.
• Recent analyst reports have resulted in target price adjustments for RH, with Barclays lowering it from $436 to $385 while Guggenheim maintained a "buy" rating with a $300 target price.

RH (NYSE:RH - Get Free Report)'s share price gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $228.12, but opened at $218.18. RH shares last traded at $225.10, with a volume of 1,352,052 shares changing hands.

The company reported $2.93 EPS for the quarter, missing analysts' consensus estimates of $3.22 by ($0.29). The company had revenue of $899.15 million during the quarter, compared to analyst estimates of $906.58 million. RH had a negative return on equity of 67.71% and a net margin of 2.57%.The firm's revenue for the quarter was up 8.4% on a year-over-year basis. During the same quarter last year, the business earned $1.69 earnings per share. RH has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS.

Analyst Upgrades and Downgrades

RH has been the subject of several recent research reports. Barclays cut their target price on shares of RH from $436.00 to $385.00 and set an "overweight" rating for the company in a report on Friday. UBS Group dropped their target price on shares of RH from $235.00 to $215.00 and set a "neutral" rating for the company in a report on Thursday, June 5th. Citigroup boosted their price target on shares of RH from $200.00 to $233.00 and gave the company a "neutral" rating in a research report on Wednesday, September 3rd. TD Cowen boosted their price target on shares of RH from $235.00 to $265.00 and gave the company a "buy" rating in a research report on Friday. Finally, Guggenheim reaffirmed a "buy" rating and issued a $300.00 target price on shares of RH in a research report on Friday. Nine analysts have rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $263.41.

Institutional Investors Weigh In On RH

A number of institutional investors and hedge funds have recently modified their holdings of RH. BNP PARIBAS ASSET MANAGEMENT Holding S.A. acquired a new position in shares of RH during the 2nd quarter worth $26,000. AlphaQuest LLC purchased a new stake in RH in the 1st quarter valued at about $29,000. Farther Finance Advisors LLC grew its holdings in RH by 67.8% in the 2nd quarter. Farther Finance Advisors LLC now owns 151 shares of the company's stock valued at $29,000 after buying an additional 61 shares during the period. Sunbelt Securities Inc. grew its holdings in RH by 690.0% in the 4th quarter. Sunbelt Securities Inc. now owns 79 shares of the company's stock valued at $31,000 after buying an additional 69 shares during the period. Finally, UMB Bank n.a. grew its holdings in shares of RH by 53.8% during the 2nd quarter. UMB Bank n.a. now owns 180 shares of the company's stock worth $34,000 after purchasing an additional 63 shares during the period. Institutional investors and hedge funds own 90.17% of the company's stock.

RH Stock Performance

The firm has a market cap of $4.24 billion, a PE ratio of 53.98, a PEG ratio of 0.66 and a beta of 2.15. The stock has a fifty day moving average price of $218.13 and a 200-day moving average price of $210.04.

About RH

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.

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