Williams-Sonoma Third Quarter Earnings Sneak Peek

Williams-Sonoma, Inc. (NYSE:WSM) will unveil its latest earnings on Wednesday, November 14, 2012. Williams-Sonoma 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 analyst estimate is for net income of 45 cents per share, a rise of 9.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 43 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 45 cents during the last month. For the year, analysts are projecting profit of $2.54 per share, a rise of 13.4% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at net income of 43 cents a share versus the estimate of profit of 41 cents a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between August 15, 2012 and November 8, 2012, the stock price rose $8.93 (24.5%), from $36.44 to $45.37. It saw one of its worst periods between July 5, 2012 and July 12, 2012 when shares fell for six straight days, dropping 6% (-$2.20) over that span.

A Look Back: In the second quarter, profit rose 10.4% to $43.4 million (43 cents a share) from $39.3 million (37 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 7.3% to $874.3 million from $814.8 million.

Wall St. Revenue Expectations: On average, analysts predict $921.8 million in revenue this quarter, a rise of 6.3% from the year-ago quarter. Analysts are forecasting total revenue of $4.02 billion for the year, a rise of 8.1% from last year’s revenue of $3.72 billion.

Analyst Ratings: There are mostly holds on the stock with 14 of 22 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.19 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.29 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.8% to $545.9 million while assets rose 0.3% to $1.2 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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