Williams-Sonoma Q2 Profit Beats View; Forecast Raised (WSM)

By Dividend.com Staff,

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Home goods retailer Williams-Sonoma, Inc. ( WSM ) on Thursday posted a much better-than-expected second quarter profit and raised its forecast, sending its shares higher in premarket trading.

The San Francisco-based company reported second quarter net income of $30.8 million, or 28 cents per share, compared with just $399,000, or break-even per share, in the year-ago period. Excluding one-time items, adjusted profit was 31 cents per share.

Net sales rose 15% from last year, to $776 million.

On average, Wall Street analysts expected a smaller profit of 22 cents per share, on lower revenue of $757.9 million.

Looking ahead, the company boosted its third quarter earnings outlook to a range of 26 to 30 cents per share, on 7% to 10% sales growth. For the full year, it projected earnings of $1.63 to $1.70 per share on 9% to 11% revenue growth.

Williams-Sonoma shares rose 67 cents, or +2.4%, in premarket trading Thursday.

The Bottom Line
Shares of WSM have a 2.12% dividend yield, based on last night's closing price of $28.33. The stock has technical support in the $22-$23 price area. If today's momentum can continue, we see overhead resistance around the $30 price level. We would remain on the sidelines for now.

Williams-Sonoma, Inc. ( WSM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing Stocks
Referenced Stocks: WSM

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