Williams-Sonoma Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Williams-Sonoma (NYS: WSM) reported earnings on May 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 29 (Q1), Williams-Sonoma met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.


Margins dropped across the board.

Revenue details
Williams-Sonoma notched revenue of $817.6 million. The 20 analysts polled by S&P Capital IQ looked for sales of $811.1 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $770.8 million.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.34. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.32 per share. GAAP EPS of $0.30 for Q1 were 3.4% higher than the prior-year quarter's $0.29 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 37.8%, 60 basis points worse than the prior-year quarter. Operating margin was 6.0%, 90 basis points worse than the prior-year quarter. Net margin was 3.8%, 30 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $865.0 million. On the bottom line, the average EPS estimate is $0.40.

Next year's average estimate for revenue is $3.99 billion. The average EPS estimate is $2.46.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 212 members out of 308 rating the stock outperform, and 96 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Williams-Sonoma a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Williams-Sonoma is outperform, with an average price target of $39.19.

If you're invested in retailers like Williams-Sonoma, you should check out The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Williams-Sonoma. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement