Why Williams-Sonoma (WSM) Is Popping on Thursday

NEW YORK (TheStreet) -- Williams-Sonoma (WSM), the popular home goods retailer, is soaring on Thursday after reporting fourth-quarter results after the bell a day earlier.

By market open, shares had surged 6.8% to $63.

The owner of namesake stores, Pottery Barn and West Elm posted net income of $1.38 a share and revenue 3.5% higher than a year earlier to $1.46 billion in its quarter ended Feb. 2. Comparable brand revenue grew 10.4%.

Analysts surveyed by Thomson Reuters had anticipated net income of $1.35 a share and sales of $1.43 billion.

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.

Investment firm Jefferies reiterated the stock as a "buy" and upped its price target to $72 from $67.

Analyst John Marrin wrote, "The focus of our investment thesis on Williams-Sonoma has shifted from the robust early cycle recovery in discretionary spending among core upper-income customers to mid-cycle growth driven by: 1) unit expansion at West Elm; 2) the turnaround at the namesake Williams-Sonoma brand, 3) and early returns on its efforts to get market share overseas."

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

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