Restoration Hardware Pre-earnings Analysis:
Chart done on daily timeframe. Apart from William-Sonoma, furniture and decor companies have been trading flat for the past six months, but RH’s earnings this week may get things moving. The company’s last earnings report came in at a surprise loss 0.42, expectations were a positive .91. Despite the big miss, their stock still jumped, but it hasn’t been able to get above those highs since, so we’ll likely see a big move on this report. The company is estimated to report a positive EPS of 1.72 per share, which is a hefty target, but holiday season may help get them there. Analysts expect RH’s revenue to grow to $777.8M for the quarter, but still down from 2022’s highs, up keeping the trend of quarterly decline for the company.
Option chain analysis:
The option chain ending on March 28th currently reflects an implied volatility reading of 165%, which is about $30 implied move on the underlying stock. The direction of the move will depend on the earnings results.