<p>Results for restoration hardware (NYSE: RH) for the fourth quarter of 2019 have RH shares falling after Monday. This follows the adjusted earnings per share (EPS) of $ 3.72 on revenue of $ 664.98 million. In comparison, Wall Street expected $ 3.59 per share on sales of $ 708.64 million during the quarter.
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Here’s what’s worth mentioning in the latest restoration hardware performance report.
Adjusted earnings per share are 27.4% higher than $ 2.92 in the fourth quarter of 2018. Quarterly revenue decreased by almost 1% compared to $ 670.89 during the same period last year. Operating profit of $ 100.98 million is an increase of 12.78% compared to the same period last year from $ 89.54 million. The restoration hardware performance report also includes a net profit of $ 68.43 million. That is a jump of 151.12% from the company’s net profit of $ 27.25 million reported during the same period last year.
Gary Friedman, CEO of Restoration Hardware, said this about RH share income:
While revenue for the fourth quarter of $ 665.0 million was lower than forecast, the adjusted earnings per share of $ 3.72 for the fourth quarter exceeded expectations for the 13th consecutive quarter as we continue to operate with a bias for earnings against revenue. Adjusted operating margins reached a record 17.4% during the fourth quarter, an increase of 230 points compared to 15.1% last year. ”
The Restoration Hardware earnings report does not include a forecast for the fiscal year 2020. Like many other companies, RH is withholding its outlook due to the effects of corona from China.
The RH share fell 10.42% after the markets closed on Monday. The stock closed the day up 6.10%.
At the time of writing, William White had no position in any of the above securities.
Article printed from InvestorPlace Media, https://investorplace.com/2020/03/restoration-hardware-earnings-drop-rh-stock/.
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