Tiffany & Company
), an S&P 500 company, is slated to report its fourth-quarter
fiscal 2012 results before the market opens on Mar 22. In the
last quarter it posted a negative surprise of 22.2%. Let's see
how things are shaping up for this announcement.
Growth Factors This Past Quarter
Tiffany posted lower-than-expected results in the last
quarter. The disappointing results were due to shriveled gross
margin and higher tax rate, apart from difficult year-over-year
comparisons. The company is in an unfavorable position as the
challenging economy and sluggish economic recovery in most of the
countries, where it operates, is taking away sheen from this
Our proven model does not conclusively show that Tiffany is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, #2 or #3 for this to happen. This is
not the case here as you will see below.
Negative Zacks ESP:
ESP for Tiffany is -1.46%. This is because the Most Accurate
Estimate stands at $1.35, while the Zacks Consensus Estimate is
pegged at $1.37.
Zacks Rank #4 (Sell):
Tiffany's Zacks Rank #4 (Sell) lowers the predictive power of ESP
because the Zacks Rank #4 when combined with a negative ESP makes
surprise prediction difficult. We caution against stocks with
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
): Earnings ESP of +11.54% and Zacks Rank #1 (Strong Buy)
Lumber Liquidators Holdings, Inc.
): Earnings ESP of +2.33% and Zacks Rank #1 (Strong Buy)
Signet Jewelers Limited
): Earnings ESP of +0.48% and Zacks Rank #3 (Hold)
CABELAS INC (CAB): Free Stock Analysis Report
LUMBER LIQUIDAT (LL): Free Stock Analysis
SIGNET GRP PLC (SIG): Free Stock Analysis
TIFFANY & CO (TIF): Free Stock Analysis
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