RH (NYSE:RH) late Wednesday significantly boosted its third quarter and fourth quarter earnings estimates, sending its shares surging higher in aftermarket trading.
The Corte Madera, CA-based upscale home furnishings retailer now expects Q3 earnings per share (EPS) between $1.02 and $1.04. That’s way up from prior guidance of just $0.68 to $0.80, and well above the Wall Street consensus estimate of $0.79. RH also sees Q3 revenues of gaining 8% to approximately $592.5 million. Previously, it had expected $585 to $590 million in sales, versus analysts’ view of $588.37 million.
For the fourth quarter, RH forecast net income of $37 million to $41 million, up from a prior range of $33 million to $37 million, and revenues of $655 million to $680 million, up from $664 million to $689 million previously.
For the full year, RH sees net revenue in the range of $2.58 billion to $2.62 billion, in-line with Wall Street’s consensus view of $2.60 billion.
The company commented that “We remain confident in reaching our long term goal of $4 billion to $5 billion in North American revenues with industry leading operating margins and returns on invested capital.”
RH shares jumped more than 12% in after-hours trading Wednesday following the announcement. Year-to-date, RH has gained 171.34%, versus a 16.36% rise in the benchmark S&P 500 index during the same period.