By Wallace Witkowski
RH shares rallied in the extended session Wednesday after the retailer formerly known as Restoration Hardware topped Wall Street expectations for the quarter and raised its forecast to match the consensus estimated by analysts.
RH /zigman2/quotes/200286355/composite RH -0.99% shares surged 12% after hours, following a 0.1% rise in the regular session to close at $576.96. Shares are up 22% over the past 12 months, compared with a 27% gain by the S&P 500 index /zigman2/quotes/210599714/realtime SPX -1.04% .
The company reported third-quarter net income of $184.1 million, or $5.88 a share, compared with $46.4 million, or $1.64 a share, in the year-ago period. Adjusted earnings were $7.03 a share, compared with $6.20 a share in the year-ago period.
Revenue rose to $1.01 billion from $844 million in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of $6.61 a share on revenue of $981.9 million.
“While we believe a conservative view of revenues in the fourth quarter is prudent due to the uncertainties posed by the new virus variant, the postponed opening of our new San Francisco Gallery until the spring, and the continued shipping and port delays, the power of our operating model gives us the confidence to raise our outlook for fiscal 2021 for the third time this year,” the company said in a statement.
RH expects fiscal 2021 revenue growth of between 32% and 33%, or $3.76 billion to $3.79 billion. Previously, RH had forecast a 31% to %33 gain. Analysts expect revenue of $3.76 billion.