Williams-Sonoma, Inc. (NYSE: WSM) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company released its financial results for the second quarter, blowing away expectations on every metric. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The earnings report;
- what we’re seeing from WSM as a result; and
- what we’ll be watching for with regard to the stock ahead.
WSM Announces Earnings
As mentioned above, Williams-Sonoma is flying early on in the trading session this morning after the company reported its financial results for the second quarter, beating expectations at every opportunity. Here’s what we saw from the report:
- Earnings – In terms of earnings, WSM did overwhelmingly well. During the second quarter, the company generated net income in the amount of $51.7 million. That works out to $0.62 per share. On an adjusted for non-recurring cost and asset impairment cost basis, earnings came in at $0.77 per share. Analysts were only expecting that earnings would come in at $0.68 per share.
- Revenue – Revenue also proved to be a strong point for the company. During the quarter, analysts expected that the company would generate revenue in the amount of $1.26 billiion. However, the company actually reported revenue in the amount of $1.28 billion, once again beating expectations.
- Guidance – Finally, WSM provided strong guidance. For the current quarter, the company said that it is expecting for earnings to come in between $0.90 per share and $0.95 per share. On a full-year basis, the company is expecting that it will be able to generate earnings in the range between $4.26 per share and $4.36 per share.
In a statement, Laura Alber, President and CEO at WSM, had the following to offer:
Today, we are announcing another quarter of strong results with topline growth at the high-end of guidance, gross margin significantly above last year and a substantial EPS outperformance. Our powerful multi-channel, multi-brand platform, together with our strong execution of our strategic initiatives in digital leadership, product innovation, retail transformation and operational excellence are having a positive impact on all parts of our business. Given the results in the first half and the momentum our initiatives are creating, we are raising our full-year guidance for net revenues, comp revenue growth, operating margin and EPS.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Williams-Sonoma, the news proved to be overwhelmingly positive. After all, investors are ultimately investing for growth, and the financial results show that the company delivered just that. So, it comes as no surprise to see that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:44), WSM is trading at $67.17 per share after a gain of $4.56 per share or 7.28% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on WSM. In particular, we’re interested in following the news surrounding the cookware company’s continued growth as the second quarter proved to be a smash hit. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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