Signet Jewelers (SIG) crushed second-quarter earnings estimates early Thursday, with revenue and same-store sales unexpectedly rising. Signet stock soared early Thursday after high-end Tiffany (TIF) fell in the wake of its quarterly results this week.
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Signet Earnings
Estimates: Wall Street expected Signet earnings per share to plunge 84% to 21 cents according to Zacks Investment Research. Revenue was seen slipping 5% to $1.328 billion. Same-store sales were expected to drop 4.2%.
Results: Signet earnings came in at 52 cents a share, while revenue rose 1.4% to $1.42 billion. Same-store sales rose 1.7%, with Zales comps soaring 7.1%.
Outlook: Signet Jewelers raised its full-year EPS guidance to $4.05-$4.40 from $3.75-$4.25. It sees full-year revenue of $6.2 billion to $6.3 billion vs. its old target of $5.9 billion to $6.1 billion. Signet expects same-store sales to be flat to -1.5%. It had seen a mid-single-digit drop.
Also, CFO Michele Santana will step down in 2019.
Signet Stock
Shares shot up 24% to 67.68 on the stock market today, hitting a nine-month high.
Signet stock spiked June 6, after the company reported a surprise first-quarter profit. But it had missed views on revenue in three of the six quarters heading into the Q2 report. In addition, its decision to sell its credit financing arm was labeled a "desperate move" by CFRA analyst Victor Ahluwalia.
"I think financing provided stability in revenue, even when the underlying jewelry sales were not doing as well," he said.
Signet is the world's largest retailer of diamond jewelry. Its portfolio of subsidiaries includes Zales, Kay Jewelers, Jared, Ernest Jones and H. Samuel.
However, its stock price crashed 20% in March following a weak full-year financial forecast and announcement of a three-year restructuring plan. It has weak ratings in IBD's Composite, EPS and Relative Strength categories.
Signet currently lags in fourth place in the Retail/Wholesale-Jewelry Group. Other major players include Tiffany (TIF), Swatch (SWGAY), Fossil (FOSL) and group leader Movado (MOV).
Tiffany stock initially spiked Tuesday morning on earnings but closed up just 1% and then fell 4.3% on Wednesday. Movado stock crashed 15% Wednesday on its earnings report.
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The post Signet Earnings More Than Double Estimates; Stock Soars appeared first on Investor's Business Daily.
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