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

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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 The NASDAQ OMX Group, Inc.

Created by Dividend.com

This article appears in: Investing , Stocks

Referenced Stocks: WSM



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