Tiffany & Co Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Tiffany & Co (NYSE:TIF) will unveil its latest earnings on Monday, August 27, 2012. Tiffany & Co. is a jeweler and specialty retailer that sells timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories.

Tiffany & Co Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 75 cents per share, a decline of 12.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 85 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 75 cents during the last month. Analysts are projecting profit to rise by 1.1% compared to last year’s $3.64.

Past Earnings Performance: Last quarter, the company missed estimates by 5 cents, coming in at net income of 64 cents per share against an estimate of profit of. In the fourth quarter of the last fiscal year, the company also missed expectations.

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Stock Price Performance: Between June 25, 2012 and August 21, 2012, the stock price had risen $7.70 (15%), from $51.32 to $59.02. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 9, 2012, when shares rose for six straight days, increasing 9.4% (+$5.04) over that span. It saw one of its worst periods between May 1, 2012 and May 15, 2012 when shares fell for 11 straight days, dropping 10.9% (-$7.48) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.3 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 4.61 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 8.9% to $682.4 million while assets rose 1.5% to $2.93 billion.

Wall St. Revenue Expectations: On average, analysts predict $891.9 million in revenue this quarter, a rise of 2.2% from the year-ago quarter. Analysts are forecasting total revenue of $3.87 billion for the year, a rise of 6.3% from last year’s revenue of $3.64 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 30.5% in the second quarter of the last fiscal year, 20.5% in the third quarter of the last fiscal year and 7.8% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 23.7% for the last four quarters.

Analyst Ratings: There are 10 out of 18 analysts surveyed (55.6%) rating Tiffany a buy. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the first quarter, profit rose 0.6% to $81.5 million (64 cents a share) from $81.1 million (63 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 7.6% to $819.2 million from $761 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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