Abhoy Sarkar's Avatar
published in Blogs
Aug 30, 2019

Williams-Sonoma (WSM, $65.20) reports higher-than-expected fiscal Q2 earnings

Williams-Sonoma’s fiscal-second-quarter earnings came in higher than what analysts had expected.

For the quarter ended Aug. 4, the e-commerce home-furnishing/kitchenware retailer reported adjusted earnings of 87 cents per share, compared to the Bloomberg estimate of 83 cents. The EPS was also +13% higher compared to the year-ago quarter. Non-GAAP operating margin expanded +10 basis points to 6.9%.

 Net revenue in the quarter rose +7.5% year-over-year to $1.37 billion, beating the Bloomberg estimate of $1.31 billion.

Williams-Sonoma experienced comparable brand revenue growth of 6.5%, on the back of accelerating comparable growth for West Elm and Pottery Barn to 17.5% and 4.2%, respectively.

Looking ahead, the company has predicted full-year non-GAAP diluted earnings-per-share of $4.60 to $4.80. It expects net revenue to range between  $5.74 billion to $5.9 billion for the year. Its forecast for comparable brand revenue growth is +3% to +6%.

 

Related Ticker: WSM

WSM in +5.77% Uptrend, rising for three consecutive days on May 18, 2023

Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where WSM advanced for three days, in of 344 cases, the price rose further within the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 56 cases where WSM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on May 25, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on WSM as a result. In of 104 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for WSM turned negative on May 22, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .

WSM moved below its 50-day moving average on May 19, 2023 date and that indicates a change from an upward trend to a downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where WSM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

The Aroon Indicator for WSM entered a downward trend on May 26, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

Fear & Greed

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.975) is normal, around the industry mean (14.052). P/E Ratio (7.491) is within average values for comparable stocks, (25.028). Projected Growth (PEG Ratio) (1.439) is also within normal values, averaging (2.437). Dividend Yield (0.029) settles around the average of (0.037) among similar stocks. P/S Ratio (0.900) is also within normal values, averaging (68.774).

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. WSM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

Notable companies

The most notable companies in this group are Home Depot (NYSE:HD), Lowe's Companies (NYSE:LOW), AutoZone (NYSE:AZO), Tractor Supply Company (NASDAQ:TSCO), Ulta Beauty (NASDAQ:ULTA), Best Buy Company (NYSE:BBY), Five Below (NASDAQ:FIVE), Bath & Body Works (NYSE:BBWI), GameStop Corp (NYSE:GME), Advance Auto Parts (NYSE:AAP).

Industry description

The specialty stores sector includes companies dedicated to the sale of retail products focused on a single product category, such as clothing, carpet, books, or office supplies. A specialty store could face intense competition from big-box departmental chains, and therefore offering an adequate collection of the product type it specializes in is key in maintaining/growing its market.

Market Cap

The average market capitalization across the Specialty Stores Industry is 6.41B. The market cap for tickers in the group ranges from 48 to 294.4B. HD holds the highest valuation in this group at 294.4B. The lowest valued company is CALI at 48.

High and low price notable news

The average weekly price growth across all stocks in the Specialty Stores Industry was 0%. For the same Industry, the average monthly price growth was 3%, and the average quarterly price growth was 1%. SDA experienced the highest price growth at 106%, while MSSV experienced the biggest fall at -30%.

Volume

The average weekly volume growth across all stocks in the Specialty Stores Industry was 7%. For the same stocks of the Industry, the average monthly volume growth was -65% and the average quarterly volume growth was 165%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 49
P/E Growth Rating: 54
Price Growth Rating: 60
SMR Rating: 64
Profit Risk Rating: 76
Seasonality Score: 13 (-100 ... +100)
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