#$rh

Restoration Hardware Holdings, Inc. | Reports June 11 AMC

Consumer Discretionary - Specialty Retail

Restoration Hardware Holdings, Inc. will release their FQ1 '18 earnings report after the close on Tuesday. The Estimize consensus expects an EPS of $1.05, three cents higher than the Wall Street estimate. This would be a 1,991% YoY growth. Estimize’s predictions about RH EPS performance has beaten Wall Street’s predictions 63% of the time. Estimize anticipates a revenue of $567.31M – a 1% YoY revenue growth. The Street predicts a revenue of $564.06M.

This nearly 2,000% YoY EPS growth is inflated by a $700 million share buyback program. CEO Gary Friedman has received 1,000,000 shares that vest when the company reaches $100, $125, and $150 per share benchmarks which will greatly incentivize Friedman to reach these milestones. Recently, RH has created three separate divisions (RH Modern, RH Teen and RH Hospitality) to target specific customers. It has also spent $117M to acquire Waterworks, a home accessories company.

How do you think Restoration Hardware will perform this quarter? Make an estimate here!

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Amazon (AMZN) – Bloomberg is reporting that the e-commerce giant is pursuing rights to stream live sports. Amazon is reportedly interesting in streaming soccer, tennis, golf, rugby and auto racing.

Ford (F) – The US auto giant reduced its fiscal year 2016 profit outlook after expanding its recall by 1.5 million vehicles, bringing the total to 2.4 million. Ford now expects adjusted pretax profit of approximately $10.2 billion, down from its previous forecast of $10.8 billion.

Hovnanian (HOV) – The homebuilder is falling after reporting lower-than-expected fiscal third-quarter earnings. Revenue was up 32.6% from one year ago to $716.9 million, but fell short of Wall Street’s projections of $732.51 million. 

Restoration Hardware (RH) – The luxury goods retailer reported second-quarter results that topped Wall Street estimates, despite posting a 77% drop in net income from one year ago.

Anheuser-Busch InBev (BUD) – The beer giant bought Belgium-based Brouwerij Bosteels. Anheuser-Busch InBev reportedly paid $225 million for the company.

Here are some of the stocks the Yahoo Finance team will be tracking for you today.

Wells Fargo (WFC) shares were down slightly in early trading after government regulators slapped the bank with $185 million in fines for illegal sales practices. Authorities say Wells employees opened bank and credit card accounts for customers without their approval, sometimes generating fees for insufficient funds. The bank, which fired about 5,300 employees involved in the illegal activity, will also pay $5 million in refunds averaging $25 per customer.

MasterCard (MA) is being sued in the UK for $19-billion in damages for allegedly charging excessive swipe fees to stores, which then passed the higher costs to consumers. MasterCard has denied any wrongdoing.

Apple (AAPL) remains in the spotlight. Consumers who can’t wait to get their hands on the new iPhone 7 and 7 Plus models could pre-order it starting today. However, the jet black version of the phone has already sold out and is on backorder. The new iPhone 7 officially goes on sale next week.

Restoration Hardware (RH): Restoration Hardware and high end brands have struggled recently due to a shift in consumer preferences towards value channels. This shift has been apparent especially with Restoration Hardware’s results which have steadily declined. The company has delivered negative bottom line growth for 3 consecutive quarters, coupled with decelerating revenue growth. Weak results from William Sonoma a few weeks ago does not likely bode well for Restoration Hardware. This is just one of many pieces of unfortunate news shareholders have received. Full year projections were recently cut by more than $1 per share with Q2 expectations cut nearly in half. Unsurprisingly, the stock has struggled year-to-date and in the past 12 months but the smallest surprise could reconcile some of those losses.

Barnes and Noble (BKS): Barnes and Noble was Amazon’s first of many victims during its historic rise. The bookseller is now considered by many to be a showroom for online retailers and ebooks. The advent of ebooks has played a huge role in the demise and recent bounceback that Barnes and Noble has witnessed. Ebooks, unlike a physical book, carry less overhead costs and aren’t subject to excess inventory. Shares are up nearly 46% year to date and could breakout even further if the company is able to turn a profit to kick off its fiscal 2017.

Zumiez (ZUMZ): The clothing retailer has delivered weak growth amidst increasing competition from online retailers, a shift toward fast fashion trends and slow mall traffic. Consequently comparable store sales have come in negative for 16 straight months. More recently the company’s first quarter printed a loss for the first time in over 2 years and is expected to do so in its upcoming report. Shares are down 28% in the past 12 months and historically drop 6% immediately following an earnings report.

Few stocks have outperformed the S&P 500 by a wider margin than Under Armour since the 2009 lows. Despite the declines of late in UA, it still has outperformed the broad market over 1,000% over the past 6-years.

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Below looks at the current chart pattern of UA-

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UA remains inside a uniform rising channel since the 2009 lows. As mentioned above, a "Head & Shoulders" topping pattern is NOT proven at this time. UA is testing dual support at (1), that would appear important to hold, for this high flying stock.

Why is it important for high flying stocks to hold at support? Check out below what happens when a stock creates an Eiffel Tower pattern and support gives way.

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Restoration Hardware (RH) and Valeant Pharma (VRX) were high flyers over the past few years. Once support was taken out, sellers came forward.

UA has been an upside leader over the past few years. The Power of the Pattern feels this is NOT your typical support test for UA.