Williams-Sonoma, Inc. (NYSE:WSM) Analysts Are Pretty Bullish On The Stock After Recent Results
It's been a pretty great week for Williams-Sonoma, Inc. (NYSE:WSM) shareholders, with its shares surging 15% to US$286 in the week since its latest annual results. Results were roughly in line with estimates, with revenues of US$7.8b and statutory earnings per share of US$14.55. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Williams-Sonoma
Taking into account the latest results, Williams-Sonoma's 23 analysts currently expect revenues in 2025 to be US$7.72b, approximately in line with the last 12 months. Statutory per share are forecast to be US$14.88, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$7.61b and earnings per share (EPS) of US$14.70 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The consensus price target rose 36% to US$263despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Williams-Sonoma's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Williams-Sonoma, with the most bullish analyst valuing it at US$330 and the most bearish at US$159 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.4% by the end of 2025. This indicates a significant reduction from annual growth of 9.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Williams-Sonoma is expected to lag the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Williams-Sonoma going out to 2027, and you can see them free on our platform here..
You can also see our analysis of Williams-Sonoma's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
