NEW YORK (TheStreet) -- Shares of Williams-Sonoma Inc. (WSM - Get Report) are down -10.98% to $66.67 in pre-market trading on Thursday, after the company issued lower than expected guidance for the 2014 third quarter, saying it forecast diluted earnings per share to be between 58 cents and 63 cents, while analysts polled by Thomson Reuters are expecting EPS of 66 cents.
Watch the video below for a closer look at Williams-Sonoma's latest quarterly results:
The home goods products specialty retailer said third quarter revenue should be between $1.10 billion and $1.13 billion; analysts are expecting the company to report revenue at the higher end of its guidance.
However, Williams-Sonoma said its 2014 second quarter net income increased to $50.7 million, or 53 cents per diluted share, from $48.9 million, or 49 cents per diluted share for the 2013 second quarter.
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Revenue grew by 5.8% to $1.03 billion for the most recent quarter versus $982 million for the same period last year.
Additionally, Morgan Stanley (MS - Get Report) downgraded Williams-Sonoma to "equal-weight" from "overweight" and cut its price target to $74 from $82, based on the company's slowing operating momentum.
Separately, TheStreet Ratings team rates WILLIAMS-SONOMA INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WILLIAMS-SONOMA INC (WSM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
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