Williams-Sonoma (NYSE:WSM) soared in trading after announcing better-than-expected Q4 results. The retailer that sells kitchenware and home furnishings reported adjusted earnings of $5.44 per share in Q4 as compared to $5.50 in the same period last year, handily beating analysts’ estimates of $5.12 per share.
Don't Miss Our New Year's Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The company’s revenues declined by 6.9% year-over-year in the fourth quarter to $2.28 billion and were above consensus estimates of $2.22 billion. WSM’s comparable revenues declined by 6.8% in Q4.
Williams-Sonoma also raised its quarterly dividend by 26% to $1.13 per share and expanded its stock buyback to $1 billion.
In FY24, WSM expects its net revenues to grow in the range of a negative 3% to a positive 3% with comparables in the range of a negative 4.5% to a positive 1.5%. The company has projected operating margin between 16.5% and 16.8% in FY24.
Is WSM Stock a Good Buy?
Analysts remain cautiously optimistic about WSM stock with a Moderate Buy consensus rating based on four Buys and Holds and one Sell each. WSM stock has skyrocketed by more than 100% over the past year and the average WSM price target of $243.56 implies a downside potential of 13.4% at current levels.
