Investors Are Buzzing About Apple, Rio Tinto, Amsurg, More

Restoration Hardware Lower on Earnings

Restoration Hardware Holdings Inc (NYSE:RH) is sharply lower in the pre-market hours after the company reported a loss of $0.05 per share for its first quarter of fiscal year 2016 ended April 30 after the market close yesterday, missing the consensus estimate by $0.10 per share. Sales rose by 7.8% year-over-year to $455.5 million, exceeding estimates by $3.36 million, as comparable brand revenue inched higher by 4%. Restoration Hardware shares are down by just under 20% in extended market trading however, primarily due to weak guidance. Management expects full fiscal year EPS of $0.28-to-$0.33, less than half of analysts’ consensus estimate of $0.80 per share. Full fiscal year revenue is being pegged at $505 million-to-$520 million, below the consensus of $532 million. As reason for the lower EPS, management blames, “the costs associated with RH Modern production delays and investments to elevate the customer experience, the timing of recognizing membership revenues related to the transition from a promotional to a membership model, and a more aggressive approach to rationalizing our SKU count to optimize inventory.” The number of elite funds in our system with holdings in Restoration Hardware Holdings Inc (NYSE:RH) rose by five quarter-over-quarter to 38 as of the end of the first quarter.

Apple Adjusts App Store Fees

Apple Inc. (NASDAQ:AAPL) is trending today after App store boss Phil Schiller said that iOS developers who maintain a subscription with customers for longer than a year will have Apple’s share of the subscription fees halved to 15%. Apple is also planning to allow all developers to offer subscriptions rather than just a certain subset as before. Mr. Schiller commented, “Now we’re going to open up to all categories, and that includes games, which is a huge category.” In addition, Apple is planning to show search ads in its App Store. Apple Inc. (NASDAQ:AAPL) was the fourth-most popular equity among the funds that we follow at the end of the first quarter, with 152of them reporting Apple stakes.

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