uploads///

What Could Drive Williams-Sonoma’s EPS This Year

By

Mar. 28 2019, Updated 1:43 p.m. ET

Analysts’ expectations

This year, Williams-Sonoma (WSM) expects adjusted EPS of $4.50-$4.70, while analysts expect the company’s adjusted EPS to rise 2.9% YoY (year-over-year) to $4.59 from $4.46. Its EPS growth is expected to be driven by revenue growth and share repurchases, partially offset by its EBIT margin contracting and a higher effective tax rate.

This year, analysts expect Williams-Sonoma’s EBIT margin to contract YoY to 8.4% from 8.5%, and its effective tax rate to rise YoY from 22.3% to 23.6%. The company’s management expects an effective tax rate of 23%–24%.

Article continues below advertisement

On March 20, WSM announced that its board had authorized increasing its existing share repurchase amount by $500 million. By the end of the fourth quarter, the company had $710 million under its share repurchase program. Share repurchases drive a company’s EPS by lowering the number of shares outstanding. This year, analysts expect RH’s (RH) EPS to grow 20.1%, and Bed Bath & Beyond’s (BBBY) to fall 10.4%.

Dividends

On March 20, WSM’s board announced a quarterly dividend of $0.48 per share to be paid on May 31 to shareholders as of April 26. The company’s dividend yield was at 3.36% yesterday, and its stock price was $57.18. Bed Bath & Beyond’s dividend yield was 3.73%.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.