The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Signet Jewelers missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share expanded significantly.
Margins grew across the board.
Signet Jewelers booked revenue of $716.2 million. The eight analysts polled by S&P Capital IQ anticipated a top line of $733.5 million on the same basis. GAAP reported sales were 0.8% higher than the prior-year quarter's $710.5 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 $0.43. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.37 per share. GAAP EPS of $0.43 for Q3 were 43% higher than the prior-year quarter's $0.30 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 32.9%, 50 basis points better than the prior-year quarter. Operating margin was 7.4%, 130 basis points better than the prior-year quarter. Net margin was 4.9%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.49 billion. On the bottom line, the average EPS estimate is $2.06.
Next year's average estimate for revenue is $3.96 billion. The average EPS estimate is $4.28.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 74 members out of 92 rating the stock outperform, and 18 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Signet Jewelers a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Signet Jewelers is buy, with an average price target of $58.63.
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