Restoration Hardware (RH) Stock Rebounds From Weak Guidance

NEW YORK (TheStreet) --Restoration Hardware (RH - Get Report) shares rallied in trading today, closing up 4.06% to $96.92, after falling in after-hours trading yesterday following the release of its quarterly results after the closing bell.

The luxury home goods retailer said that the launch of two different businesses in the second half of this year hurt its revenue growth outlook as it guided revenue growth between 14% and 16%, or between $2.13 billion and $2.17 billion, short of analysts $2.24 billion expectations.

CompanyCEO GaryFriedman responded to the stock's swoon yesterday by cautioning against looking at the company's short term prospects as opposed to looking to the growth that it could experience after the company completes its expansion later this year, according to theWall Street Journal.

"We have to look beyond these (trading) bumps... (and) short-term thinking. What we are building here is a really durable building, that will stand the test of time and that will dominate its marketplace," said Friedman.

TheStreet Ratings team rates RESTORATION HARDWARE HLDNGS as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate RESTORATION HARDWARE HLDNGS (RH) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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Restoration Hardware (RH) Stock Rebounds From Weak Guidance