Shares of RH RH rose 1.07% in the after-hours trading session on Dec 11, after it delivered impressive results for third-quarter fiscal 2022 (ended Oct 29, 2022). The top and bottom line surpassed the Zacks Consensus Estimate. This marks the company’s 20th consecutive quarter of earnings beat.However, on a year-over-year basis, earnings and revenues declined. RH expects continued softness in business trends due to weakness in the housing market that will likely persist over the next several quarters and the Federal Reserve’s anticipated interest rate hikes.Earnings, Revenues & Margin DiscussionAdjusted earnings of $5.67 per share topped the consensus mark of $4.72 by 20.1% but decreased 19.3% from the year-ago figure of $7.03.RH Price, Consensus and EPS Surprise RH price-consensus-eps-surprise-chart | RH Quote Adjusted net revenues of $869.1 million surpassed the consensus mark of $839.1 million by 3.6% but fell 13.7% on a year-over-year basis. Yet, revenues outpaced its revised guidance, backed by its solid promotional moves and long-term investments.Adjusted gross margin contracted 50 basis points (bps) to 49.7% for the quarter. The decline was due to fixed occupancy deleverage.Adjusted selling, general & administrative expenses rose 640 bps to 28.9% of total revenues. Adjusted operating margin contracted 690 bps year over year to 20.8%. Adjusted EBITDA declined 30.4% year over year to $216.2 million for the quarter. Adjusted EBITDA margin also contracted 600 bps year over year to 24.9%.Store Update & Balance SheetAs of Oct 29, there were 67 RH Galleries, 39 outlet stores, one Guesthouse and 14 Waterworks showrooms operational.In the fiscal third-quarter end, RH’s cash and cash equivalents were $2,154.3 million compared with $2,177.9 million in the fiscal 2021 end (ended Jan 29, 2022). The company ended the fiscal third quarter with merchandise inventories worth $819.3 million compared with $734.3 million at the end of fiscal 2021. RH ended the quarter with net debt of $375.2 million.Net cash provided by operating activities was $336 million in the first nine months of fiscal 2022 compared with $533.7 million in the comparable year-ago period. Adjusted free cash flow totaled $101.7 million in the third quarter fiscal end versus $145.3 million a year ago.For the trailing 12-month period, total net debt to adjusted EBITDA was 0.4. Adjusted capital expenditures for the reported period were $59.2 million compared with $78.6 million a year ago.Tepid ViewBased on the current market conditions, RH now expects net revenues to decline 3.5-4.5% compared with 3.5-5.5% expected earlier. The latest projected figure indicates a decline from the 32% growth reported in fiscal 2021.For the entire year, RH now expects an adjusted operating margin within 21.5-22% (compared with 21-21.5% of earlier projection). In the year-ago period, the metric was 25.6%.Zacks Rank & Key Construction PicksRH currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Some better-ranked stocks in the Zacks Construction sector are CRH plc CRH, Janus International Group, Inc. JBI and United Rentals, Inc. (URI), each carrying a Zacks Rank #2 (Buy).CRH manufactures cement, concrete products, aggregates, roofing, insulation and other building materials.CRH’s expected earnings growth rate for 2022 is 22.1%. The Zacks Consensus Estimate for current-year and next-year earnings has improved to $3.98 and $3.43 per share from $3.46 and $3.42, respectively, over the past 30 days.Headquartered in Temple, GA, Janus manufactures and supplies turn-key self-storage and commercial and industrial building solutions. Solid backlog levels, an impressive project pipeline, productivity improvements and commercial actions, including pricing, are expected to drive growth. The company is expected to benefit from its one-stop-shop offering with a leading market share position in self-storage doors and related design and installation services.Janus’ earnings for 2022 are expected to rise 21%. The Zacks Consensus Estimate for current-year and next-year earnings has improved to 75 cents and 88 cents per share from 69 cents and 80 cents, respectively, over the past 30 days.United Rentals is the largest equipment rental company in the world, with an integrated network of 1,390 rental locations in the United States, Canada and Europe.URI’s expected earnings growth rates for 2022 and 2023 are 47.3% and 12.5%, respectively. The Zacks Consensus Estimate for current-year and next-year earnings has improved to $32.50 and $36.57 per share from $32.41 and $36.27, respectively, over the past 30 days. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RH (RH): Free Stock Analysis Report CRH PLC (CRH): Free Stock Analysis Report Janus International Group, Inc. (JBI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research