Why Restoration Hardware (RH) Stock Is Up After Hours

NEW YORK (TheStreet) -- Restoration Hardware (RH) stock is spiking in extended trading after recording better-than-expected earnings and sales in its first quarter ended April and upping its guidance for its full year. After the bell, shares added 11.8% to $79.75.

In its first quarter, the company earned 18 cents a share, 7 cents higher than what analysts surveyed by Thomson Reuters anticipated. Revenue of $366.3 million was 21.6% higher year over year and beat estimates of $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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Separately, 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."

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