Signet Jewelers Limited Earnings: Here’s Why Investors are Not Excited Now

Signet Jewelers Limited (NYSE:SIG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.69%.

Signet Jewelers Limited Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 1.18% to $0.84 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Rose 3.08% to $880.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Signet Jewelers Limited reported adjusted EPS income of $0.84 per share. By that measure, the company beat the mean analyst estimate of $0.83. It missed the average revenue estimate of $909.51 million.

Quoting Management: Mike Barnes, Chief Executive Officer, commented: “We delivered solid second quarter results as expected, driven by same store sales increases of 3.6% overall and 4.9% in the US led by Kay up 5.8% and Jared up 5.5%. Our earnings per share of $0.84 were at the high-end of our guidance; excluding Ultra our earnings per share were $0.90. All results were, as previously explained, impacted by the Mother’s Day calendar shift. I would like to thank all Signet associates for their contributions to these results.”

Key Stats (on next page)…

Revenue decreased 11.41% from $993.6 million in the previous quarter. EPS decreased 25.66% from $1.13 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.48 and has not changed. For the current year, the average estimate is a profit of $4.8, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)