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Williams-Sonoma (WSM) Q4 Earnings: What's in the Cards?
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Williams-Sonoma, Inc. (WSM - Free Report) is set to report fourth-quarter fiscal 2016 results on Mar 15, after market close.
Last quarter, the company posted a positive surprise of 2.6%. The company has surpassed estimates in two of the past four quarters, resulting in an average positive surprise of 1.5%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Williams-Sonoma enjoys a competitive advantage owing to its multi-brand/multi-channel business model. This leading specialty retailer of home furnishing products reported better-than-expected earnings in two of the last three quarters of 2016. Moreover, its e-commerce business is gaining traction. The successful launch of new products and stores is also contributing to its revenues. These tailwinds are expected to drive earnings and revenues in the to-be reported quarter as well.
However, sluggish comparable brand revenues for several quarters owing to soft retail environment and cautious customers raise concerns. The rate of comparable brand revenue increase has softened across all brands over the years. Comparable brand revenues are expected to increase in the range of negative 1% to 4%. This does not indicate any significant improvement from the current trend.
Notably, for the fiscal fourth quarter, the Zacks Consensus Estimate is pegged at $1.52, down 2.03% year over year. Meanwhile, the estimate for revenues is $1.61 billion, implying a 1.5% increase.
Earnings Whispers
Our proven model does not conclusively show that Williams-Sonoma will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is -3.95% as the Most Accurate estimate is $1.46 while the Zacks Consensus Estimate is pegged higher at $1.52. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Though Williams-Sonoma’s Zacks Rank #3 increases the predictive power of ESP, the company’s negative ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Peer Release
RH (RH - Free Report) (formerly Restoration Hardware) reported preliminary fourth quarter adjusted earnings per share of 68 cents. The preliminary adjusted earnings figure beat the Zacks Consensus Estimate of 65 cents by 4.6%.
Upcoming Releases
At Home Group Inc. is expected to report its quarterly numbers on Mar 14.
Pier 1 Imports, Inc. is likely to report its quarterly numbers on Apr 12.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Williams-Sonoma (WSM) Q4 Earnings: What's in the Cards?
Williams-Sonoma, Inc. (WSM - Free Report) is set to report fourth-quarter fiscal 2016 results on Mar 15, after market close.
Last quarter, the company posted a positive surprise of 2.6%. The company has surpassed estimates in two of the past four quarters, resulting in an average positive surprise of 1.5%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Williams-Sonoma enjoys a competitive advantage owing to its multi-brand/multi-channel business model. This leading specialty retailer of home furnishing products reported better-than-expected earnings in two of the last three quarters of 2016. Moreover, its e-commerce business is gaining traction. The successful launch of new products and stores is also contributing to its revenues. These tailwinds are expected to drive earnings and revenues in the to-be reported quarter as well.
However, sluggish comparable brand revenues for several quarters owing to soft retail environment and cautious customers raise concerns. The rate of comparable brand revenue increase has softened across all brands over the years. Comparable brand revenues are expected to increase in the range of negative 1% to 4%. This does not indicate any significant improvement from the current trend.
Notably, for the fiscal fourth quarter, the Zacks Consensus Estimate is pegged at $1.52, down 2.03% year over year. Meanwhile, the estimate for revenues is $1.61 billion, implying a 1.5% increase.
Earnings Whispers
Our proven model does not conclusively show that Williams-Sonoma will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is -3.95% as the Most Accurate estimate is $1.46 while the Zacks Consensus Estimate is pegged higher at $1.52. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Williams-Sonoma, Inc. Price and EPS Surprise
Williams-Sonoma, Inc. Price and EPS Surprise | Williams-Sonoma, Inc. Quote
Zacks Rank: Though Williams-Sonoma’s Zacks Rank #3 increases the predictive power of ESP, the company’s negative ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Peer Release
RH (RH - Free Report) (formerly Restoration Hardware) reported preliminary fourth quarter adjusted earnings per share of 68 cents. The preliminary adjusted earnings figure beat the Zacks Consensus Estimate of 65 cents by 4.6%.
Upcoming Releases
At Home Group Inc. is expected to report its quarterly numbers on Mar 14.
Pier 1 Imports, Inc. is likely to report its quarterly numbers on Apr 12.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>