I was waiting for the Q2 report of RH. it is really a nice stock with nice jumps. Yesterday was the Q2 report announcement AMC. Q2 : https://www.sec.gov/Archives/edgar/data/1528849/000156459018022614/rh-ex991_6.htm The basic net income per share for Q2 : $2.92[Q2 2018] and $-0.28[Q2 2017] the surprise was good : I can see the pre-market price is really down ! Oh God. I don't understand why the market behave like this !!! does anybody know why when good earnings happen, prices starts to get down ?! I was captured in the same situation for Intel, MU, NVDA ,RHT , AVGO .. . they reported really good earnings and price went down some of them recovered , the others not !
I think it's sales guidance that caused the stock to sell off after the conference call. Be careful. It's a volatile stock.
Doesn't sound bad ! More and more earnings and very small revenue ! wouldn't earnings be much better than the revenue ?
More and more adjusted earnings. It could be the adjustments. The stock rallied on the report but sold off on conference call. I would read the call transcript. And 5percent for this name is essentially flat.
News 16:15 EDT RH reports Q2 adj. EPS $2.49, consensus $1.75 - Reports Q2 revenue $640.8M, consensus $660.89M. Comparable brand revenues increased 5% in Q2. Adjusted diluted earnings per share includes a 44c per share net benefit comprised of a 51c tax benefit from associate option exercises following the sharp increase ... Lowers FY18 revenue view to down 2% from $2.53B-$2.57B, consensus $2.56B. Nope earnings are not more important than revenues. Earnings are easily manipulated, such as moving expenses from one quarter to another. Revenues are much harder to manipulate. Not only did RH not meet revenue expectations, it lowered its Fiscal Year revenue projections. A bad sign. Also you will notice that 0.51 of the $2.49 EPS was a one time adjustment.
Your analysis seems very logical. but this statement : I didn't understand it. could you elaborate more ? what does one time adjustment mean. I came across this word several times and didn't get it
A change to the earnings that is a one time event, and will not affect future earnings. Examples, payments for a big lawsuit, a sale of an asset, a tax accounting change.