Shares of furniture retailer RH (NYSE:RH) gained in today’s trading as investors await its Q1 earnings results on June 13 after the market closes. Analysts are expecting earnings per share to come in at -$0.13 on revenue of $725.2 million. This represents a decline from the $2.21 per share seen in the year-ago period, according to TipRanks’ data.
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RH has had somewhat of a mixed track record lately when it comes to beating estimates. Indeed, it beat EPS forecasts five times during the past eight quarters, but two of those misses came in its most recent quarters, as demonstrated in the image below.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting an 11.98% move in either direction.
Is RH a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RH stock based on four Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 3% increase in its share price over the past year, the average RH price target of $327.90 per share implies 17.69% upside potential.
