Why Restoration Hardware (RH) Will Gain on Friday

NEW YORK (TheStreet) -- Restoration Hardware (RH) is looking to gain over Friday's session after management issued positive first-quarter guidance.

Before the bell Friday, shares are up 9.7% to $69.99.

The home furnishings retailer said it expects earnings of 9 cents to 11 cents a share for its current quarter ending April. Analysts polled by Thomson Reuters expected 7 cents a share.

Net income is expected between $3.7 million and $4.5 million, higher than estimates of $2.63 million.

In its fourth quarter, the Corte Madera, Calif.-based business recorded net income of 83 cents a share, in line with estimates, and sales 18.5% higher year over year to $471.69 million. Analysts had expected revenue slightly higher to $493.09 million.

In a statement CEO Gary Friedman said the results were especially positive due to a "tougher-than-anticipated holiday-selling season and the impact of weather on our retail business."

Must Read: Warren Buffett's 10 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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, solid stock price performance and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers