Tiffany & Company
) - a designer, manufacturer and retailer of high-end jewelry and
other products - is slated to release its fiscal third-quarter
2012 (ended October, 2012) financial results on November 29,
2012. The current Zacks Consensus Estimate for the quarter stands
at 62 cents per share, indicating a decline of 10.8% from the
prior-year quarter's earnings of 70 cents a share. Revenue, as
per the Zacks Consensus Estimate, is $858 million.
The decline in earnings per share is estimated mainly due to
the company's weak and lower-than-expected earnings in the last
two quarters. Tiffany seems to be in an unfavorable position as
the soft economic environment continues to take its toll on the
Recap of Second-Quarter
Tiffany's fiscal second-quarter 2012 earnings of 72 cents a
share, missing the Zacks Consensus Estimate by a couple of cents,
and dropped sharply from 86 cents earned in the previous-year
quarter. The disappointing result reflected the company's dismal
performance in the Americas and Europe region due to soft demand
Tiffany reported net sales of $886.6 million during the
quarter, up 2% from the year-ago quarter, on the heels of healthy
performance in the Asia-Pacific and Japan regions and new
collection launches. However, total revenue fell short of the
Zacks Consensus Estimate of $887 million. Comparable-store sales
dropped 3% in the second quarter of 2012. In constant currencies,
net sales jumped 3%, but comps edged down 1%.
Estimate Revisions Trend
We do not see any estimate revisions at this point. Of the
total 17 estimates for the stock, none have been revised either
in the upward or downward direction for the upcoming quarter in
the last 7 or 30 days. The story remains the same for fiscal 2012
(with 18 estimates for the stock.
Analysts kept their estimates intact, in the absence of any
major news having a direct or indirect impact on the
In the absence of estimate revisions, the Zacks Consensus
Estimate remained stable at 62 cents and $3.59 for the third
quarter and fiscal-year 2012, respectively, over the last 7 or 30
Mixed Earnings Surprise History
With respect to earnings surprise, Tiffany missed the Zacks
Consensus Estimate for the consecutive last three quarters.
However, in the third quarter of fiscal 2011, the company beat
the Zacks Consensus Estimate. Therefore, the average of earnings
surprise came to a positive 1.15% for the last four quarters.
We will have to wait and watch how the company performs, as
the year progresses. Currently, we maintain our long-term Neutral
recommendation on Tiffany, a peer of
Signet Jewelers Limited
). Moreover, the stock carries a Zacks #3 Rank that translates
into a short-term Hold rating.
SIGNET GRP PLC (SIG): Free Stock Analysis
TIFFANY & CO (TIF): Free Stock Analysis
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