Williams-Sonoma, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Williams-Sonoma, Inc. WSM | 0.00 |
It's been a pretty great week for Williams-Sonoma, Inc. (NYSE:WSM) shareholders, with its shares surging 14% to US$193 in the week since its latest first-quarter results. The result was positive overall - although revenues of US$1.8b were in line with what the analysts predicted, Williams-Sonoma surprised by delivering a statutory profit of US$1.93 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Williams-Sonoma from 20 analysts is for revenues of US$8.15b in 2027. If met, it would imply a reasonable 3.4% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$9.35, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$8.14b and earnings per share (EPS) of US$9.27 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$207, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Williams-Sonoma, with the most bullish analyst valuing it at US$230 and the most bearish at US$136 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Williams-Sonoma's past performance and to peers in the same industry. For example, we noticed that Williams-Sonoma's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.6% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 1.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.1% per year. Although Williams-Sonoma's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Williams-Sonoma's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Williams-Sonoma going out to 2029, and you can see them free on our platform here..
We also provide an overview of the Williams-Sonoma Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
