Why Williams-Sonoma (WSM) Is Gaining After Hours

NEW YORK (TheStreet) -- Williams-Sonoma (WSM) is gaining in extended trading after beating analysts' estimates in its fourth quarter.

After the bell, shares had added 6.3% to $62.70.

The home goods retailer generated revenue of $1.46 billion in the three months to Feb. 2, a 3.5% year-over-year increase. Analysts surveyed by Thomson Reuters had anticipated sales of $1.43 billion.

Comparable brand revenue grew 10.4%. By brand, Pottery Barn sales jumped 14.6%, West Elm soared 18.3%, and namesake stores edged 2.3% higher.

Net income of $1.38 a share beat analysts' expectations by 3 cents.

"The results speak for themselves: we delivered strong top- and bottom-line performance, which combined with over $350 million in share repurchases and dividends generated superior returns for our stockholders," said CEO Laura Alber in a statement.

For the April-ending first quarter, management guides for earnings between 41 cents and 44 cents a share and revenue of $920 million to $940 million. Analysts had forecast net income of 46 cents a share and $943.53 million in sales.

Separately, the board authorized a 6% increase to its quarterly cash dividend to 33 cents a share.

Must read: Warren Buffett's 10 Favorite Stocks

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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, solid stock price performance, impressive record of earnings per share growth, increase in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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