Stock performance

Williams-Sonoma (WSM) is scheduled to post its second-quarter earnings after the market closes on August 22. As of August 17, the company was trading at $59.32, which represents a rise of 20.6% since the announcement of its first-quarter earnings on May 23.

Why Investors Are Optimistic about Williams-Sonoma’s Q2 Earnings

In the first quarter, Williams-Sonoma posted adjusted EPS of $0.67 on revenues of $1.20 billion, outperforming analysts’ EPS expectations of $0.58 and revenue expectations of $1.16 billion. Also, the company outperformed analysts’ SSSG (same-store sales growth) estimate of 4.0% with posted EPS of 5.5%. After posting strong first-quarter earnings, the company’s management raised its revenue and EPS guidance for 2018. The raised 2018 guidance appears to have increased investors’ confidence, leading to a rise in the company’s stock price.

Year-to-date performance

Since the beginning of 2018, Williams-Sonoma’s stock price has increased by 14.7%. During the same period, peers RH (RH) and Bed Bath & Beyond (BBBY) have returned 75.1% and -16.4%, respectively. Meanwhile, the SPDR S&P Homebuilders ETF (XHB) has declined by 10.8% year-to-date.

Series overview

With Williams-Sonoma’s second-quarter earnings around the corner, we will look at analysts’ revenue and EPS expectations for the second quarter. We’ll also cover the management’s guidance for 2018 and analysts’ estimates for the next four quarters. Later, we will have a look at analysts’ recommendations and the company’s valuation multiple. First, let’s start by looking at analysts’ second-quarter revenue estimate.

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