RH Surges On Q2 Earnings Beat

RH RH shares are trading higher after the company reported better-than-expected second-quarter EPS and sales results.

The company reported quarterly earnings of $4.90 per share on Wednesday, which beat the analyst consensus estimate of $3.40 by 44%. This is a 53.13% increase over earnings of $3.20 per share from the same period last year.

The company reported quarterly sales of $709.70 million, which beat the analyst consensus estimate of $704.05 million by 0.80%. This is a 0.45% increase over sales of $706.51 million in the same period last year.

RH expects to reach 20% adjusted operating margin in fiscal year 2020, mid single-digit sales growth.

"If revenues grow at a higher rate in the second half, we would expect adjusted operating margins to expand beyond 20%, and now see a long term path to 25% adjusted operating margins," the company said."

RH shares were trading up 16% at $374.40 in Wednesday's after-hours session. The stock has a 52-week high of $345.46 and a 52-week low of $73.14.