Updated 3:00pm ET:
RH does not report after the close on Monday. It has been updated. It reports on Wednesday after the close.
Posted 11:35am ET:
I will be doing an earnings preview on Restoration Hardware (RH) later today at about 3pm ET. It reports after the close on Monday. I will not buy it. It is for educational purposes only. I am trying to get all the experience I need before the giants start reporting next earnings season. Companies that have been reporting the past few weeks and the weeks to come are crappy. They are low liquidity stocks i.e. low volume stocks. So their option spreads are too big and therefore very risky. Also, given that they are low volume companies, their fundamentals cannot be fully relied on because a small change in volume and/or business activity can significantly alter the companies performance.
It is for this reason that it is often said "the earnings season is over" once the big companies report even though there are always companies reporting every week of the year. Though earnings seasons lasts three months (a quarter), the focus is "the heart of earnings season" which is a three-week period, but primarily the week that Apple, Google, Amazon, Facebook, Netflix, Baidu (and some other giants) report. The aluminum company Alcoa is often used to mark the unofficial start of the earnings season. It reports on October 8th. So for the next month, there will be many companies reporting but very few significant ones. I will use this time to preview some earnings play just for educational purpose (not for trading), unless I see something really good worth trading which I will make known.
