Williams-Sonoma (NYSE:WSM) Shares Gap Up on Strong Earnings

Williams-Sonoma, Inc. (NYSE:WSM – Get Rating) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $112.16, but opened at $116.60. Williams-Sonoma shares last traded at $115.26, with a volume of 720,507 shares.

The specialty retailer reported $2.64 EPS for the quarter, topping the consensus estimate of $2.41 by $0.23. Williams-Sonoma had a return on equity of 72.68% and a net margin of 12.07%. The business had revenue of $1.76 billion during the quarter, compared to the consensus estimate of $1.80 billion. During the same quarter last year, the company earned $3.50 EPS. Williams-Sonoma’s revenue was down 7.2% on a year-over-year basis.

Williams-Sonoma Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 26th. Shareholders of record on Friday, April 21st will be given a $0.90 dividend. This is an increase from Williams-Sonoma’s previous quarterly dividend of $0.78. The ex-dividend date of this dividend is Thursday, April 20th. This represents a $3.60 annualized dividend and a yield of 3.15%. Williams-Sonoma’s payout ratio is presently 23.65%.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on WSM. Bank of America dropped their target price on Williams-Sonoma from $114.00 to $108.00 in a research report on Friday, March 17th. Wedbush lifted their price objective on Williams-Sonoma from $110.00 to $115.00 and gave the stock a “neutral” rating in a research note on Thursday, March 9th. Barclays decreased their target price on Williams-Sonoma from $135.00 to $126.00 in a research note on Wednesday. Loop Capital cut their price target on Williams-Sonoma from $205.00 to $185.00 in a report on Friday, March 17th. Finally, Citigroup cut their price target on Williams-Sonoma from $127.00 to $123.00 in a report on Thursday, May 18th. Four analysts have rated the stock with a sell rating, eight have assigned a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $127.18.

Hedge Funds Weigh In On Williams-Sonoma

Several institutional investors and hedge funds have recently made changes to their positions in the company. Royce & Associates LP acquired a new position in shares of Williams-Sonoma in the first quarter valued at approximately $841,000. Ameriprise Financial Inc. boosted its holdings in shares of Williams-Sonoma by 1.0% in the 1st quarter. Ameriprise Financial Inc. now owns 713,013 shares of the specialty retailer’s stock valued at $86,744,000 after purchasing an additional 6,933 shares in the last quarter. Hook Mill Capital Partners LP boosted its holdings in shares of Williams-Sonoma by 7.9% in the 1st quarter. Hook Mill Capital Partners LP now owns 87,379 shares of the specialty retailer’s stock valued at $10,124,000 after purchasing an additional 6,371 shares in the last quarter. Mercer Global Advisors Inc. ADV boosted its holdings in shares of Williams-Sonoma by 8.4% in the 1st quarter. Mercer Global Advisors Inc. ADV now owns 12,852 shares of the specialty retailer’s stock valued at $1,548,000 after purchasing an additional 993 shares in the last quarter. Finally, Alaethes Wealth LLC boosted its holdings in shares of Williams-Sonoma by 7.3% in the 1st quarter. Alaethes Wealth LLC now owns 8,121 shares of the specialty retailer’s stock valued at $988,000 after purchasing an additional 556 shares in the last quarter. Institutional investors and hedge funds own 99.49% of the company’s stock.

Williams-Sonoma Stock Performance

The stock has a fifty day simple moving average of $117.79 and a two-hundred day simple moving average of $121.38. The stock has a market cap of $7.50 billion, a price-to-earnings ratio of 7.50, a P/E/G ratio of 0.84 and a beta of 1.61.

About Williams-Sonoma

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Williams-Sonoma, Inc engages in the retailing of home products. It operates through the following segments: Pottery Barn, West Elm, Williams Sonoma, Pottery Barn Kids and Teen and Other. The Other segment includes net revenues from international franchise operations, Rejuvenation and Mark and Graham.