NEW YORK (TheStreet) -- Restoration Hardware (RH - Get Report) stock is gaining on Thursday after its first quarter came in better than analysts' estimates and management guided for a strong fiscal year. By midday, shares had added 13.1% to $80.70.
In its first quarter, the company earned 18 cents a share and generated sales of $366.3 million. Analysts surveyed by Thomson Reuters had anticipated 11 cents a share and $347.7 million.
The home furnishings retailer increased its fiscal 2014 guidance to at least 20% revenue growth, representing around $1.86 billion to $1.89 billion, and earnings of $2.24 to $2.30 a share. Analysts estimated revenue of $1.85 billion and earnings of $2.20 a share.
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TheStreet Ratings team rates RESTORATION HARDWARE HLDNGS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RESTORATION HARDWARE HLDNGS (RH) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
- You can view the full analysis from the report here: RH Ratings Report