At Home Group (NASDAQ:HOME) share price has been gaining momentum over the last year, supported by improving demand for its collection of products for every room type. HOME share price trades around $30 at present, up 100% in the last twelve months, due to continued support from its strong financial numbers.

Financials Support Share Price

At Home Group posted sales growth of more than 20% in the last 15 consecutive quarters and its comparable sales also remained positive in the previous 16 straight quarters.

The company generated year on year sales growth of 25% in the latest quarter, while its comparable sales jumped 5.7% over the same period last year. Higher revenue growth along with improving margins has also been supporting its earnings potential.

At Home Group generated earnings growth 79% in the final quarter of 2018, extending the full-year earnings by 59% to $0.94 per share from fiscal 2017.

Commenting on the results CEO said, “As we further expand across both new and existing markets, we remain committed to executing on our strategies to increase brand awareness, elevate our in-store experience, and provide customers with fresh, trend-right home décor at a great value.”

The Outlook Is Compelling

The company expects fiscal 2019 net sales growth in the range of 22%, due to its marketing and portfolio management strategies.  Its pro forma net income is likely to grow by 33% in fiscal 2019 compared to the previous year.  The robust growth in financial numbers will also add to its valuations, which are currently higher than the industry averages. Its stock trades around 50 times to earnings when the industry average is about 21 times to earnings

The company also appears in a healthy cash position to support its growth activities. At the end of the last year, its total liquidity (cash plus revolving credit facility) stood around $86.3 million, and it posted more than $106 million in operating cash flows.

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