Why RH Stock Rallied 13.5% at the Open Today
Shares of furniture and home goods retailer RH (NYSE: RH) got a quick boost on Thursday, rising as much as 13.5% in the first hour of trading. By roughly 10:45 a.m. ET today, the stock had given back a little bit of ground, but was still higher by a respectable 10% or so. The big news was the company's earnings update after the close yesterday. Here's a quick look at what got investors so excited.
RH's third-quarter 2021 revenue of $1.006 billion was a new high-water mark for the company, besting 2020's third-quarter tally by 19%, and topping the same quarter of 2019 by a huge 49%. The company's operating margin rose a full percentage point year over year, with adjusted earnings coming in at $7.03 per share, compared to $6.20 in the third quarter of 2020. Wall Street consensus was looking for earnings of $6.68 per share, so RH beat in a very big way. That alone would have been enough to get investors excited here.
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Source Fool.com
