Williams-Sonoma Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Williams-Sonoma (NYS: WSM) reported earnings on March 19. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Feb. 3 (Q4), Williams-Sonoma met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.


Gross margins increased, operating margins contracted, net margins dropped.

Revenue details
 Williams-Sonoma recorded revenue of $1.41 billion. The 24 analysts polled by S&P Capital IQ looked for a top line of $1.40 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.27 billion.

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 $1.34. The 27 earnings estimates compiled by S&P Capital IQ predicted $1.29 per share. GAAP EPS of $1.34 for Q4 were 16% higher than the prior-year quarter's $1.16 per share.

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 41.3%, much better than the prior-year quarter. Operating margin was 15.0%, 20 basis points worse than the prior-year quarter. Net margin was 9.5%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $867.1 million. On the bottom line, the average EPS estimate is $0.36.

Next year's average estimate for revenue is $4.24 billion. The average EPS estimate is $2.78.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 253 members out of 348 rating the stock outperform, and 95 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Williams-Sonoma a green thumbs-up, and 14 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 $48.14.

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The article Williams-Sonoma Beats Analyst Estimates on EPS originally appeared on Fool.com.

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. The Motley Fool recommends 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.

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