On Mar 13, 2014, shares of
) reached a 52-week high of $65.87 on the back of solid fourth
quarter 2013 results and a dividend hike. Shares eventually
closed at $64.74, representing a year-to-date return of around
FORTUNE BRD H&S (FBHS): Free Stock Analysis
HOME DEPOT (HD): Free Stock Analysis Report
MASCO (MAS): Free Stock Analysis Report
WILLIAMS-SONOMA (WSM): Free Stock Analysis
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Share Price Drivers
Share price of Williams-Sonoma rose sharply following the release
of its fourth quarter 2013 results on Mar 12, as the company
outperformed the retail industry. The rise was also driven by a
6% hike in dividend, announced on the same day in a separate
This well-known specialty retailer of home products reported
adjusted earnings of $1.38 per share in the fourth quarter of
2013, beating the Zacks Consensus Estimate of $1.35 per share by
2.2% on the back of better-than-expected sales. Earnings
increased 2.99% from the comparable prior-year quarter level of
$1.34 on the back of solid top-line growth and decline in
expenses. Excluding the additional week in the fourth quarter of
2012, earnings increased 8.7%.
Net revenue of $1.47 billion in the fourth quarter of 2013 beat
the Zacks Consensus Estimate of $1.43 million by 2.8%. Net
revenue grew 4.3% year over year, driven by solid increase in
comparable brand revenues. Excluding the additional week in the
fourth quarter of 2012, net revenue rose 10.0%.
Williams-Sonoma also provided an encouraging outlook for first
quarter and full year 2014. For the first quarter of 2014, the
company expects net revenue in the range of $920 million to $940
million. Comparable brand revenues are expected to increase in
the range of 4% to 6%. Earnings per share are expected to be in
the range of 41 cents to 44 cents in the quarter, higher than the
prior year quarter level of 40 cents.
For 2014, Williams-Sonoma expects to report adjusted earnings per
share in the range of $3.05 to $3.15, higher than adjusted
earnings of $2.84 per share in 2013. The company expects to
generate net revenue in the range of $4.63 billion to $4.71
billion. Comparable brand revenues are expected to grow in the
range of 5% to 7%.
Williams-Sonoma carries a Zacks Rank #3 (Hold).
Two other companies that recently reported their fourth quarter
results and surpassed both the top and bottom line estimates
Fortune Brands Home & Security, Inc.
). Another company,
Home Depot Inc.
) managed to beat the Zacks Consensus Estimate for earnings in
the fourth quarter of 2013.