Williams-Sonoma, Inc. Second Quarter Earnings Sneak Peek

Williams-Sonoma, Inc. (NYSE:WSM) will unveil its latest earnings on Tuesday, August 23, 2011. Williams-Sonoma, Inc. is a retailer of products for the home. The retail segment of its business sells products through five retail store concepts (Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Williams-Sonoma Home).

Williams-Sonoma, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 36 cents per share, a rise of 16.1% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting net income of $2.21 per share, a rise of 13.3% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting profit of 30 cents per share against a mean estimate of net income of 28 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $824 million in revenue this quarter, a rise of 6.2% from the year ago quarter. Analysts are forecasting total revenue of $3.72 billion for the year, a rise of 6.3% from last year’s revenue of $3.5 billion.

Analyst Ratings: Analysts seem relatively indifferent about Williams-Sonoma with 14 of 23 analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 61.8% while it rose 28.3% in the fourth quarter of the last fiscal year and more than fourfold in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 7.4% to $770.8 million in first quarter. The figure rose 9.7% in the fourth quarter of the last fiscal year from the year earlier, climbed 11.8% in the third quarter of the last fiscal year from the year-ago quarter and 15.4% in the second quarter of the last fiscal year.

Competitors to Watch: Bed Bath & Beyond Inc. (NASDAQ:BBBY), Pier one Imports, Inc. (NYSE:PIR), Kirkland’s, Inc. (NASDAQ:KIRK), Target (NYSE:TGT), Cost Plus, Inc. (NASDAQ:CPWM), J.C. Penney (NYSE:JCP), Nordstrom (NYSE:JWN), Macy’s (NYSE:M), Haverty Furniture Companies, Inc. (NYSE:HVT), Italtile Limited (NYSE:ITE).

Stock Price Performance: During May 23, 2011 to August 17, 2011, the stock price had fallen $8.96 (-22.9%) from $39.05 to $30.09. The stock price saw one of its best stretches over the last year between February 2, 2011 and February 14, 2011 when shares rose for nine-straight days, rising 18.5% (+$5.92) over that span. It saw one of its worst periods between May 26, 2011 and June 8, 2011 when shares fell for nine-straight days, falling 8.6% (-$3.42) over that span. Shares are down $5.14 (-14.6%) year to date.

(Source: Xignite Financials)

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