RH Q1 Earnings Top Estimates, Revenues Miss, Margins Up Y/Y
The company reported adjusted earnings per share of 13 cents, which topped the Zacks Consensus Estimate of a loss per share of nine cents by 244.4%. The reported figure compares favorably with the loss per share of 40 cents reported in the year-ago period. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
RH price-consensus-eps-surprise-chart | RH Quote
Net revenues of $814 million marginally lagged the consensus mark of $818 million by 0.5% but improved 12% year over year. Net revenues from the RH segment increased year over year by 13% to $765 million, while the same for Waterworks tumbled 1.9% to $49 million.
The gross margin expanded 20 basis points (bps) to 43.7% in the reported quarter.Selling, general & administrative expenses (as a percentage of total net revenues) expanded 80 bps to 36.8% year over year.Adjusted operating margin expanded 50 bps year over year to 7%. Moreover, adjusted EBITDA increased 19.4% year over year to $106.4 million for the quarter, with adjusted EBITDA margin expanding 80 bps to 13.1%.
As of May 3, 2025, RH's cash and cash equivalents were $46.1 million, up from $30.4 million at the end of fiscal 2024. The company ended the first quarter of fiscal 2025 with merchandise inventories worth $1.01 billion compared with $1.02 billion at the end of fiscal 2024.RH ended the quarter with a net debt of $2.57 billion and a net debt-to-adjusted EBITDA ratio of 4.6x.Net cash provided by operating activities was $86.6 million as of the fiscal first quarter compared with $56.1 million in the year-ago period. Free cash flow was $34.1 million against negative $10.1 million reported in the year-ago period.Capital expenditures, as of May 3, 2025, were $52.6 million, down from $66.3 million in the year-ago period.
The company expects the quarterly net revenues to grow between 8% and 10% year over year.Adjusted operating margin is expected to be in the range of 15-16%, up from 11.7% reported in the prior-year quarter.Adjusted EBITDA margin is forecasted between 20.5% and 21.5%, up from 17.2% reported in the prior-year quarter.
For the fiscal year, RH still expects revenue growth between 10% and 13%.Adjusted operating margin is still expected to be between 14% and 15%, up from 11.3% reported in fiscal 2024.Adjusted EBITDA margin is still expected between 20% and 21%, up from 16.9% reported last year.RH unveils its expectations of free cash flow to be between $250 million and $350 million.
RH currently carries a Zacks Rank #3 (Hold).Here are some better-ranked stocks from the Zacks Consumer Staples sector.Philip Morris International Inc. PM presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.It has a trailing four-quarter earnings surprise of 3.6%, on average. The company's shares have soared 52.3% year to date. The Zacks Consensus Estimate for Philip Morris' 2025 sales and earnings per share (EPS) implies an increase of 8.1% and 13.7%, respectively, from the prior-year levels.Grocery Outlet Holding Corp. GO currently carries a Zacks Rank #2 (Buy). It delivered a trailing four-quarter earnings surprise of 25.7%, on average. The stock has tumbled 14.8% year to date.The consensus estimate for Grocery Outlet's 2025 sales indicates an increase of 7.9% while EPS reflects a 3.9% decline from a year ago.Warby Parker Inc. WRBY presently carries a Zacks Rank of 2. It delivered a trailing four-quarter negative earnings surprise of 11.7%, on average. The stock has declined 6.7% year to date.The Zacks Consensus Estimate for Warby Parker's 2025 sales and EPS indicates an increase of 14.1% and 79%, respectively, from a year ago.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
RH (RH) : Free Stock Analysis Report
Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report
Warby Parker Inc. (WRBY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Should You Buy, Sell or Hold ZIM Stock Ahead of Q2 Earnings?
ZIM Integrated Shipping Services ZIM is set to report second-quarter 2025 results on Aug. 20, before the market opens. The EPS estimate for the to-be-reported quarter has been revised 42.9% upward to $1.50 per share over the past 60 days. The bottom-line projection indicates a year-over-year decline of 51.3%. The Zacks Consensus Estimate for quarterly revenues, currently pegged at $1.77 billion, suggests a year-over-year decrease of 8.5%. Image Source: Zacks Investment Research For 2025, the Zacks Consensus Estimate for ZIM's revenues is pegged at $7.01 billion, implying a contraction of 16.8% year over year. The consensus mark for 2025 EPS is pegged at $2.83, implying a decline of 84.1% year over year. In the trailing four quarters, this shipping company surpassed EPS estimates on each of the four quarters, with the average earnings surprise being 34.5%. ZIM Integrated Shipping Services Price and EPS Surprise ZIM Integrated Shipping Services price-eps-surprise | ZIM Integrated Shipping Services Quote Q2 Earnings Whispers for ZIM Stock Our proven model does not predict an earnings beat for ZIM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. ZIM has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Factors Shaping ZIM's Q2 Results We expect the company's bottom-line performance to have been hit by escalated voyage operating costs. High labor costs are also likely to have been a spoilsport. Geopolitical risks pose operational challenges and might hurt results. An update on the tariff concerns is expected on the second-quarter conference call. On a brighter note, continued fleet expansion initiatives are likely to have driven the company's performance. Reduced container availability due to Red Sea tensions is expected to have raised freight costs. This is anticipated to have aided the quarterly performance of ZIM, which provides services to East Mediterranean and Israeli ports. Revenues and carried volumes are expected to have surged due to the disruptions. Lower capacity is anticipated to have boosted earnings. We expect an update from the management on the recent reports that CEO Eli Glickman is collaborating with shipping magnate Rami Unger to potentially acquire all of ZIM's shares. ZIM's Price Performance & Stock Valuation Over the past year, shares of ZIM have lost 26.7%, marginally outperforming the Zacks Transportation - Shipping industry but underperforming the Zacks Transportation sector. ZIM has performed better than fellow industry player Seanergy Maritime Holdings SHIP but lagged Frontline FRO in the same timeframe. Image Source: Zacks Investment Research One-Year Price Performance From a valuation perspective, ZIM is trading relatively cheap. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.30, way below the industry's 2.09. The company has a Value Score of A. ZIM's reading is lower than that of other shipping players like Frontline and Seanergy Maritime Holdings. While Frontline has a Value Score of B, Seanergy Maritime Holdings has a Value Score of A. Image Source: Zacks Investment Research Here's How to Play ZIM Stock Pre-Q2 Earnings Agreed that ZIM has quite a few factors working in its favor, including its shareholder-friendly approach and attractive valuation. However, the ongoing trade tension does not bode well for ZIM, as the company has significant exposure to both China and the United States. The shipping industry, of which ZIM is an integral part, is being hit by the ongoing trade tensions globally. The industry is responsible for a high majority of goods involved in world trade. Trade-related tensions have the potential to slow down goods transportation. Agreed that tariff woes are showing signs of easing, but in the absence of long-term trade deals, the scenario continues to be uncertain. We can safely conclude that investors should refrain from rushing to buy ZIM, which is facing quite a few challenges, ahead of its earnings release on Aug. 20. Instead, they should monitor the developments of the stock closely for a more appropriate entry point, as an erroneous and hasty decision could affect portfolio gains. ZIM's current Zacks Rank supports our thesis. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Frontline PLC (FRO) : Free Stock Analysis Report Seanergy Maritime Holdings Corp (SHIP) : Free Stock Analysis Report ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
an hour ago
- Yahoo
Micron (MU) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest trading session, Micron (MU) closed at $122.00, marking a -1.26% move from the previous day. This change lagged the S&P 500's daily loss of 0.59%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, lost 1.46%. Coming into today, shares of the chipmaker had gained 9.11% in the past month. In that same time, the Computer and Technology sector gained 3.91%, while the S&P 500 gained 2.49%. The upcoming earnings release of Micron will be of great interest to investors. In that report, analysts expect Micron to post earnings of $2.77 per share. This would mark year-over-year growth of 134.75%. Simultaneously, our latest consensus estimate expects the revenue to be $11.07 billion, showing a 42.82% escalation compared to the year-ago quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.04 per share and a revenue of $36.91 billion, representing changes of +518.46% and +46.98%, respectively, from the prior year. Investors should also note any recent changes to analyst estimates for Micron. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.55% higher. Micron is currently a Zacks Rank #3 (Hold). From a valuation perspective, Micron is currently exchanging hands at a Forward P/E ratio of 15.37. This represents a discount compared to its industry average Forward P/E of 18.93. The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Jack Henry (JKHY) Q4 Earnings and Revenues Top Estimates
Jack Henry (JKHY) came out with quarterly earnings of $1.75 per share, beating the Zacks Consensus Estimate of $1.46 per share. This compares to earnings of $1.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +19.86%. A quarter ago, it was expected that this payment processsing company would post earnings of $1.29 per share when it actually produced earnings of $1.52, delivering a surprise of +17.83%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Jack Henry, which belongs to the Zacks Computers - IT Services industry, posted revenues of $615.37 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.50%. This compares to year-ago revenues of $559.91 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Jack Henry shares have lost about 8.3% since the beginning of the year versus the S&P 500's gain of 9.7%. What's Next for Jack Henry? While Jack Henry has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Jack Henry was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.65 on $642.22 million in revenues for the coming quarter and $6.14 on $2.53 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Inc. (AI), another stock in the same industry, has yet to report results for the quarter ended July 2025. The results are expected to be released on September 3. This company is expected to post quarterly loss of $0.38 per share in its upcoming report, which represents a year-over-year change of -660%. The consensus EPS estimate for the quarter has been revised 16.9% lower over the last 30 days to the current level. Inc.'s revenues are expected to be $70.34 million, down 19.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jack Henry & Associates, Inc. (JKHY) : Free Stock Analysis Report Inc. (AI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
