Wedbush Has Negative Outlook for Arhaus FY2024 Earnings

Arhaus, Inc. (NASDAQ:ARHS) – Investment analysts at Wedbush dropped their FY2024 earnings per share estimates for shares of Arhaus in a report issued on Friday, November 8th. Wedbush analyst S. Basham now forecasts that the company will post earnings per share of $0.40 for the year, down from their previous estimate of $0.45. Wedbush has a “Neutral” rating and a $10.00 price objective on the stock. The consensus estimate for Arhaus’ current full-year earnings is $0.42 per share. Wedbush also issued estimates for Arhaus’ Q4 2024 earnings at $0.06 EPS, FY2025 earnings at $0.48 EPS and FY2026 earnings at $0.63 EPS.

Arhaus (NASDAQ:ARHS) last issued its quarterly earnings data on Thursday, November 7th. The company reported $0.07 EPS for the quarter, missing the consensus estimate of $0.08 by ($0.01). Arhaus had a net margin of 6.18% and a return on equity of 25.10%. The business had revenue of $319.13 million for the quarter, compared to analysts’ expectations of $328.94 million. During the same quarter in the prior year, the company posted $0.14 EPS. The business’s revenue for the quarter was down 2.2% on a year-over-year basis.

Other equities analysts have also issued research reports about the company. Craig Hallum lowered Arhaus from a “buy” rating to a “hold” rating and reduced their target price for the stock from $14.00 to $10.00 in a research note on Tuesday, October 15th. Barclays dropped their target price on Arhaus from $15.00 to $13.00 and set an “overweight” rating on the stock in a research report on Friday. Stifel Nicolaus lowered their price objective on Arhaus from $16.00 to $13.00 and set a “buy” rating on the stock in a report on Monday, November 4th. TD Cowen lowered their price objective on Arhaus from $19.00 to $14.00 and set a “buy” rating on the stock in a report on Friday, August 9th. Finally, Jefferies Financial Group reissued a “hold” rating and issued a $12.00 target price on shares of Arhaus in a research note on Wednesday, October 9th. Five equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $12.80.

Arhaus Stock Performance

Shares of ARHS stock opened at $9.79 on Monday. The firm has a market capitalization of $1.38 billion, a price-to-earnings ratio of 17.48, a price-to-earnings-growth ratio of 11.70 and a beta of 2.58. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.25 and a quick ratio of 0.55. The business has a fifty day moving average of $10.60 and a 200 day moving average of $13.74. Arhaus has a 1 year low of $8.22 and a 1 year high of $19.81.

Institutional Trading of Arhaus

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Victory Capital Management Inc. raised its position in Arhaus by 5.8% in the third quarter. Victory Capital Management Inc. now owns 25,893 shares of the company’s stock valued at $319,000 after purchasing an additional 1,416 shares during the period. Amalgamated Bank acquired a new position in shares of Arhaus during the second quarter worth $30,000. California State Teachers Retirement System grew its stake in shares of Arhaus by 16.9% during the first quarter. California State Teachers Retirement System now owns 35,858 shares of the company’s stock worth $552,000 after purchasing an additional 5,178 shares in the last quarter. Sequoia Financial Advisors LLC grew its stake in shares of Arhaus by 5.1% during the third quarter. Sequoia Financial Advisors LLC now owns 113,991 shares of the company’s stock worth $1,403,000 after purchasing an additional 5,577 shares in the last quarter. Finally, Privium Fund Management B.V. lifted its position in Arhaus by 34.7% in the third quarter. Privium Fund Management B.V. now owns 21,750 shares of the company’s stock valued at $268,000 after acquiring an additional 5,600 shares during the last quarter. Hedge funds and other institutional investors own 27.88% of the company’s stock.

About Arhaus

Arhaus, Inc operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits.