Williams-Sonoma (WSM) Stock Slides on Weak Fourth Quarter Guidance

Williams-Sonoma (WSM) stock is declining after the company set its fiscal 2015 fourth quarter earnings and revenue guidance below estimates.
By Amanda Gomez ,

NEW YORK (TheStreet) -- Williams-Sonoma (WSM) - Get Report stock is falling 3.64% to $63.80 in late morning trading after the company's fiscal 2015 fourth quarter earnings and revenue guidance fell short of analysts' estimates.

The furniture and home accessories retailer expects earnings between $1.53 and $1.62 per share for the current quarter, below estimates of $1.67 per share.

Revenue guidance was set at $1.58 billion to $1.63 billion, while analysts are forecasting revenue of $1.64 billion.

After the market close on Thursday, Williams-Sonoma also reported better than expected fiscal 2015 third quarter financial results.

The company posted earnings of 77 cents per share on $1.23 billion in revenue for the quarter ended November 1.

Analysts surveyed by Thomson Reuters had estimated earnings of 72 cents per share on $1.22 billion in revenue.

"Looking ahead, while the retail landscape and consumer demand has been more volatile, we believe our balanced portfolio of differentiated brands and strong multi-channel platform positions us for ongoing market share gains," CEO Laura Alber said in a statement.

Separately, TheStreet Ratings team rates WILLIAMS-SONOMA INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate WILLIAMS-SONOMA INC (WSM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, reasonable valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

You can view the full analysis from the report here: WSM

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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