Tiffany & Co Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Tiffany & Co (NYSE:TIF) will unveil its latest earnings on Thursday, November 29, 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 62 cents per share, a decline of 11.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 66 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 62 cents during the last month. Analysts are projecting profit to rise by 0.3% versus last year to $3.59.

Past Earnings Performance: The company showed net income of 72 cents per share versus a mean estimate of profit of last quarter. This marks the fourth month of falling short of estimates.

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.95 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.

Wall St. Revenue Expectations: Analysts are projecting a rise of 4.3% in revenue from the year-earlier quarter to $857.5 million.

Analyst Ratings: There are 10 out of 18 analysts surveyed (55.6%) rating Tiffany a buy.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 20.5% in the third quarter of the last fiscal year, 7.8% in the fourth quarter of the last fiscal year and 7.6% in the first quarter before increasing again in the second quarter.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last two quarters. In the first quarter, profit rose 0.6% before increasing in the second quarter.

The company’s gross margin shrank by 2.7 percentage points in the in the second quarter. Revenue rose 1.6% while cost of sales rose 8.2% to $387.4 million from a year earlier.

A Look Back: In the second quarter, profit rose 2% to $91.8 million (72 cents a share) from $90 million (69 cents a share) the year earlier, but fell short analyst expectations.

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

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