NEW YORK (TheStreet) -- Shares of Williams-Sonoma (WSM) - Get Report are down by 0.54% to $51.82 on Thursday morning, even though the San Francisco-based company reported solid results for the 2016 first quarter.
After yesterday's market close, the kitchen and home furnishings retailer posted earnings of 53 cents per diluted share, exceeding analysts' forecasts of 50 cents per share.
Revenue rose by 6.5% to $1.1 billion year-over-year and was above Wall Street's estimates of $1.08 billion.
"In the first quarter we saw accelerated growth in West Elm and Williams-Sonoma, as well as improvement across the Pottery Barn brands," CEO Laura Alber said in a statement.
For the second quarter, Williams-Sonoma sees earnings per share between 54 cents and 60 cents. Analysts are modeling earnings of 59 cents per share.
Oppenheimer maintained its "outperform" rating and $65 price target on the stock following the results.
"We remain concerned that investment spending at WSM will remain elevated and that these costs will continue to limit the potential for substantially improved margins at the chain," the firm wrote in a note this morning.
"That said, recent trends at WSM suggest clearly to us that the company is holding its own in a tough competitive environment, more than the naysayer narrative implies," Oppenheimer added.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations.
However, as a counter to these strengths, the team also finds weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: WSM