Williams-Sonoma climbs to all-time high on 4Q

NEW YORK (AP) -- Shares of Williams-Sonoma rose to an all-time high Thursday after the home goods company's fourth-quarter results topped analysts' estimates and a key sales barometer improved.

Aside from its flagship cookware stores, Williams-Sonoma's brands include Pottery Barn, Pottery Barn Kids, PBteen and West Elm. On Wednesday the company reported fourth-quarter sales at stores open at least a year climbed 10.4 percent. This figure is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.

Williams-Sonoma Inc. reported earnings of $1.38 per share on revenue of $1.47 billion for the period ended Feb. 2. Analysts polled by FactSet predicted earnings of $1.35 per share on revenue of $1.42 billion.

For the first quarter, the company foresees earnings between 41 cents and 44 cents per share on revenue in a range of $920 million to $940 million. Wall Street expects earnings of 46 cents per share on revenue of $939 million.

Full-year earnings are anticipated between $3.05 and $3.15 per share, with revenue in a range of $4.63 billion to $4.71 billion. Analysts forecast earnings of $3.19 per share on revenue of $4.63 billion.

Williams-Sonoma also increased its quarterly dividend by 6 percent to 33 cents per share from 31 cents per share. The dividend will be paid on May 28 to shareholders of record on April 25.

Kate McShane of Citi Investment Research said in a client note that the strong earnings and same-store sales results give her more confidence that the retailer can navigate its way through tough conditions, considering it dealt with rough winter weather and a very competitive and promotional holiday season during the fourth quarter.

McShane believes Williams-Sonoma's fiscal 2014 guidance is conservative, reminding investors that the company's 2013 results significantly beat the original outlook given for that year.

The analyst kept a "Buy" rating and $67 price target.

William Blair's Daniel Hofkin said he expected Williams-Sonoma's stock to climb thanks to the solid fourth-quarter results and likelihood that its outlook is beatable. The analyst also believes the stock could benefit even more in the future from an improving housing market, continued shift toward the direct channel, ongoing improvement at its namesake brand and international expansion opportunities.

Hofkin maintained an "Outperform" rating.

The company's stock gained $4.72, or 8 percent, to $63.69 in morning trading. The shares touched an all-time high of $64.20 earlier in the session.