Tiffany & Company
) is slated to report its second-quarter 2012 financial results on
August 27, 2012. The current Zacks Consensus Estimate for the
quarter stands at 75 cents a share, indicating an estimated
year-over-year decrease of about 12.8%. Revenue, as per the Zacks
Consensus Estimate, is $887 million.
Tiffany's quarterly earnings of 64 cents a share, missed the
Zacks Consensus Estimate of 69 cents, and dropped from 67 cents
earned in the prior-year quarter. Tiffany, which faces stiff
Signet Jewelers Limited
), posted net sales of $819.2 million during the quarter, up 8%
from the prior-year quarter. Total revenue came ahead of the Zacks
Consensus Estimate of $818 million.
Guidance Went Down
Given the weaker-than-expected results and sluggish economic
recovery in most of the countries, management trimmed its fiscal
2012 outlook. The company projects earnings in the range of $3.70
to $3.80 per share, down from $3.95 to $4.05 forecasted earlier.
Moreover, total net sales are expected to grow in the range of 7%
to 8%, down from 10% predicted previously.
Agreement of Estimate Revisions
During the last 30 days, 4 out of 18 estimates have been revised
downwards, while none were increased for the upcoming quarter.
Moreover, for fiscal 2012 the story remains the same with 5
estimates (out of 19) being revised downwards, while none were
In the last seven days, 2 out of 19 estimates have been revised
downwards for fiscal 2012, while none were
Magnitude of Estimate Revisions
The Zacks Consensus Estimate for the quarter remained stable
over the last 30 days. For fiscal 2012, estimates decreased 4 cents
to $3.63, as analysts expect both revenue and earnings to decline
in comparison to the prior year, on account of a sluggish economic
recovery in most of the countries and soft demand for jewelry.
Moreover, the downward pressure on earnings estimates was also in
response to the guidance cut.
Mixed Surprise History
With respect to earnings surprises, Tiffany has beat as well as
missed the Zacks Consensus Estimate over the last four quarters in
the range of negative 7.3% to positive 22.9%. The average remained
at positive 7.5%, indicating that the company has surpassed the
Zacks Consensus Estimate by the same magnitude in the trailing four
Currently, the stock holds a Zacks #3 Rank that translates into
a short-term 'Hold' rating. However, we maintain a long-term
'Underperform' rating on Tiffany following the lackluster outlook
provided for the current fiscal.
SIGNET GRP PLC (SIG): Free Stock Analysis
TIFFANY & CO (TIF): Free Stock Analysis
ZALE CORP NEW (ZLC): Free Stock Analysis Report
To read this article on Zacks.com click here.