What’s happening with RH shares in extended hours?
2023-03-29 20:35:25 ET
RH (
NYSE: RH
) is trading down in extended hours after reporting disappointing results for its fourth financial quarter that it attributed to a slowing economy.
RH shares down on weak guidance
The
retail stock
is taking hit because the company’s guidance came in shy of Street estimates as well.
RH is now calling for its full-year revenue to fall between $2.9 billion and $3.1 billion. In comparison, analysts were at $3.6 billion. Still, the management said in a
letter to shareholders
:
We raised $2.5 billion of long-term debt before the markets tightened and are now in a position to take advantage of the opportunities that may present themselves in times of uncertainty and dislocation.
Its Q1 outlook for revenue also missed expectations by some $100 million. Versus their year-to-date high, RH shares are down nearly 35% at writing.
RH Q4 financial highlights
- Net income printed at $106.9 million versus the year-ago $147 million
- Per-share earnings also declined significantly from $4.91 to $4.21
- Adjusted EPS came in at $2.88 as per the earnings press release
- Revenue tanked just over 14% on a year-over-year basis to $901.5 million
- FactSet consensus was $3.32 of adjusted EPS on $777.3 million revenue
RH ended the quarter with roughly $1.5 billion in cash including cash equivalents and restricted crash. The
letter to investors
also said:
It’s times like these that present opportunities and significant value creation for those willing to take their unique path. That unique path for RH is our long-term strategies of Product Elevation, Platform Expansion, and Cash Generation.
Wall Street
currently has a consensus “overweight” rating on RH shares.
The post
What’s happening with RH shares in extended hours?
appeared first on
Invezz
.
