Sterne Agee Raises Estimates on Williams-Sonoma

Sterne Agee has raised estimates on Williams-Sonoma WSM after a strong 3Q. In a note to clients, Sterne Agee writes, "WSM reported another strong quarter overall, with Q3 EPS of $0.35 (vs. $0.16 LY) well above our estimate of $0.29, FC of $0.31 and guidance of $0.26-$0.30. Based on the upside to Q3 and the improved sales and margin outlook for Q4, we are raising our estimate for Q4 to $0.92 from $0.88, which brings our estimate for FY10 to $1.79 from $1.70. Additionally we are raising our estimate for FY11 to $1.97 from $1.88, while maintaining our FY12 projection of $2.28." WSM closed Thursday at $32.09.