=RH (RH) reported earnings on Mon 11 June 18 (a/h)

RH (RH), the upscale furniture chain formerly known as Restoration Hardware, is soaring after beating Q1 earnings views and lifting 2018 guidance late Monday, continuing a string of wild post-earnings stock swings.

RH Earnings

Estimates: Analysts polled by Zacks Investment Research expect RH earnings to soar to $1.01 a share from 5 cents a share. Revenue should tick up 0.4% to $564 million. Same-store sales are expected to dip 0.9%, according to Consensus Metrix.

Results: Adjusted diluted EPS rose nearly 27-fold from the prior-year quarter to $1.33, on revenue of $557 million. Comparable brand revenue grew 1%.

The major profit figure reflects "the power of our new membership model, our unique and proprietary product offering, our efforts to revolutionize physical retailing, and our work designing a massively more efficient operating platform," said RH CEO Gary Friedman in a press release late Monday.

Outlook: RH management raised full-year guidance to adjusted EPS of $6.34-$6.83 vs. prior outlook for $5.45 to $6.20. It reaffirmed revenue of $2.53 billion-$2.57 billion. Analysts expect $5.85 EPS and $2.555 billion.

For the current quarter, RH sees $1.70-$1.77 EPS and $655 million-$662 million in revenue. Consensus is for $1.48 EPS and $658 million in sales.

The company said it expects revenue to accelerate through the current quarter and the back half of the fiscal year. Four new galleries are planned for 2018 in Portland, Nashville, Yountville and New York; the latter three locations will feature wine bars, cafes and, in Yountville's case, an outpost of the Doughnut Vault. Hospitality is a growing business within RH.

Friedman maintained his view that RH can be a $4 billion-$5 billion business in North America.