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Williams-Sonoma (WSM) to Post Q3 Earnings: What's in Store?

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Williams-Sonoma, Inc. (WSM - Free Report) is scheduled to report third-quarter fiscal 2019 results on Nov 21, after the closing bell.

In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 4.8% each. On a year-over-year basis, earnings and revenues of this multi-channel specialty retailer of premium quality home products grew 13% and 7.5%, respectively, mainly attributable to a 6.5% increase in comps.

Markedly, Williams-Sonoma reported better-than-expected earnings in all the last four quarters, with the average surprise being 7.9%.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been unchanged at $1.00 over the past 30 days. The estimated figure indicates an increase of 5.3% from 95 cents per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.41 billion, suggesting 4% improvement from the year-ago reported figure of $$1.36 billion.

Williams-Sonoma, Inc. Price and EPS Surprise

 

Williams-Sonoma, Inc. Price and EPS Surprise

Williams-Sonoma, Inc. price-eps-surprise | Williams-Sonoma, Inc. Quote

Factors to Consider

Williams-Sonoma’s sales and earnings are expected to be have witnessed moderate growth in the fiscal third quarter.

While relentless competition, tariffs and tough comparisons are expected to have been pressing concerns, the company’s cross-brand initiatives and momentum in the West Elm brand should have driven consolidated comps. Again, the multi-channel multi-brand platform, strong e-commerce growth, solid execution of strategic initiatives and digital leadership, product innovation, retail transformation, along with operational excellence across businesses are expected to have provided some support to the top line.

Meanwhile, higher shipping costs are expected to have put pressure on its margins in the to-be-reported quarter. Increased digital advertising investments and higher labor costs are also likely to have weighed on its bottom line.

What Our Model Indicates

Our proven model predicts an earnings beat for Williams-Sonoma this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Currently, it has a Zacks Rank #2 and an Earnings ESP of +1.82%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Worth a Look

Here are some other stocks in the Zacks Retail-Wholesale sector, which also have the right combination of elements to beat estimates in their respective quarters to be reported.

Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank #2.

Dollar General Corporation (DG - Free Report) has an Earnings ESP of +2.34% and a Zacks Rank #2.

Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank #2.

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