When Restoration Hardware Holdings Inc. (NYSE: RH) reported earnings last Tuesday, the company missed earnings per share estimates by nearly 30%. Revenues were up about 11% year over year, but they were also lower than estimates. Shares bounced around in after-hours trading, but by Wednesday morning shares opened just 10 cents below their closing price on Tuesday.

What appears to have happened is that analysts pared their estimates but remained bullish on the company’s plans going forward. Fourth-quarter revenues were hit by delays in the roll-out of new products in Restoration Hardware’s RH Modern division, and the company said that it plans to invest more in that division, cutting an estimated 22 cents from its adjusted earnings per share in 2016.

For the first quarter of fiscal 2016, the company expects net revenues in the range of $452 million to $456 million, compared with $422 million a year ago. Estimated adjusted earnings per share have been trimmed to $0.05, compared with $0.23 reported in the first quarter of fiscal 2015.

Here’s how several analysts reacted to the company’s earnings:

• Barclay’s started the stock at Equal Weight with a $50 price target.
• Cowen cut its price target to $44 and rates the stock a Market Perform.
• Deutsche Bank dropped its price target from $60 to $50.
• Raymond James cut its price target from $65 to $60 but still rates the stock a Strong Buy.
• Nomura cut its price target from $85 to $75 with a Buy rating.
• Baird cut its price target from $52 to $42.
• UBS reduced its price target from $55 to $50.

On Friday the stock closed at $43.77, up 4.5% for the day, in a 52-week range of $41.60 to $106.49. The consensus price target on the stock is $51.86, but that may not include these recent changes.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.