UPDATE 3-Williams-Sonoma ups Q4 outlook; Street unimpressed

* Sees Q4 EPS $0.96-$0.98 vs est $0.94

* Sees Q4 revenue $1.17-$1.19 bln

* Shares down 4 percent

By NR Sethuraman

BANGALORE, Jan 13 (Reuters) - Williams-Sonoma Inc's (WSM.N) fourth-quarter profits will likely come in ahead of expectations, but the stock fell, suggesting investors have become accustomed to substantial upsides to the company's forecasts.

"(Wall Street) was ahead of the company's guidance already and that unfortunately takes away the impact of (Thursday's) numbers," Suntrust Robinson Humphrey analyst David Mage said.

The operator of Williams-Sonoma cookware stores and Pottery Barn furniture now expects fourth-quarter earnings of 92-94 cents a share, up from its prior forecast of 88-93 cents a share.

"The company has grown into the stock price, in our view, but it may be difficult for WSM to significantly outperform the market, as its earnings growth rate begins to slow," RBC Capital Markets analyst Scot Ciccarelli said in a note.

Williams-Sonoma has been beating analysts' estimates for the past six consecutive quarters.

Furniture business of the company, which competes with Ethan Allen Interiors Inc (ETH.N) and Pier 1 Imports Inc (PIR.N), has been performing well despite weakness in the larger industry.

Going forward, inventory growth is expected to be slightly ahead of sales growth, the company said.

On an adjusted basis, the company forecast earnings of 96-98 cents a share.

Revenue for the 8-week holiday period ended Dec. 26 rose to $865 million.

The company, which has a market capitalization of $3.57 billion, also raised its fourth-quarter revenue view to $1.17-$1.19 billion.

Analysts on an average were expecting earnings of 94 cents a share, on revenue of $1.15 billion, according to Thomson Reuters I/B/E/S.

The San Francisco, California-based company's shares were trading down 4 percent at $32.99 on Thursday on the New York Stock Exchange.

Shares of rivals Pier 1 Imports were down 5 percent at $4.97 and those of Ethan Allen were down about 1 percent on Thursday on the New York Stock Exchange. (Reporting by NR Sethuraman in Bangalore; Editing by Roshni Menon and Sriraj Kalluvila)