The 10-second takeaway
For the quarter ended July 31 (Q2), Tiffany met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share expanded.
Gross margins contracted, operating margins contracted, net margins expanded.
Tiffany booked revenue of $886.6 million. The 20 analysts polled by S&P Capital IQ foresaw sales of $892.8 million on the same basis. GAAP reported sales were 1.6% higher than the prior-year quarter's $872.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.72. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.73 per share. GAAP EPS of $0.72 for Q2 were 4.3% higher than the prior-year quarter's $0.69 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.3%, 270 basis points worse than the prior-year quarter. Operating margin was 17.4%, 270 basis points worse than the prior-year quarter. Net margin was 10.4%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $859.3 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $3.87 billion. The average EPS estimate is $3.61.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 595 members out of 760 rating the stock outperform, and 165 members rating it underperform. Among 215 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 177 give Tiffany a green thumbs-up, and 38 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tiffany is outperform, with an average price target of $67.43.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Tiffany & Co. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.