Home goods retailer Williams-Sonoma, Inc. (
) on Thursday posted a much better-than-expected second quarter
profit and raised its forecast, sending its shares higher in
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
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
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. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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