After Wednesday’s closing bell, Restoration Hardware (RH) released its third quarter financial results and boosted its outlook for 2015.
Inside RH's Results
The company reported profits of $19.4 million, or 47 cents per share, up from $9.5 million, or 23 cents per share, reported for last year’s Q3. Excluding special items, earnings were $20.3 million, or 49 cents per share, compared to $13 million, or 32 cents per share, a year ago. On average, analysts expected to see EPS of 48 cents.
Revenue rose 22% to $484.7 million from $395.8 million last year. Analysts expected to see $481.91 million.
Looking ahead to Q4, the company expects to see adjusted earnings between $0.99 and $1.00, and revenue between $575 million and $585 million. Analysts expect to see earnings of $1.00 and $582.74 million in revenue.
For FY2015, RH expects to see earnings between $2.33 and $2.35 per share and revenue between $1.86 billion and $1.87 billion. Analysts expect to see earnings of $2.33 per share and $1.86 billion in revenue.
Mutual Funds to Watch
Investors seeking exposure to Restoration Hardware may consider a mutual fund investment as an alternative to directly owning the stock. The mutual funds below currently hold the largest stakes in RH.
|PRNHX||T. Rowe Price New Horizons||8.03%|
|FDGRX||Fidelity® Growth Company||5.46%|
|FBGRX||Fidelity® Blue Chip Growth||4.48%|
The Bottom Line
The funds above allow investors to gain exposure to RH while still remaining diversified. Investors interested in RH may also be interested in Pier 1 Imports (PIR) and Williams Sonoma (WSM).
Shares of RH are up 45% YTD.