The 10-second takeaway
For the quarter ended Oct. 31 (Q3), Tiffany met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Tiffany recorded revenue of $852.7 million. The 20 analysts polled by S&P Capital IQ anticipated a top line of $857.9 million on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $821.8 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 $0.49. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.63 per share. GAAP EPS of $0.49 for Q3 were 30% lower than the prior-year quarter's $0.70 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 54.4%, 350 basis points worse than the prior-year quarter. Operating margin was 13.8%, 400 basis points worse than the prior-year quarter. Net margin was 7.4%, 350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.29 billion. On the bottom line, the average EPS estimate is $1.47.
Next year's average estimate for revenue is $3.85 billion. The average EPS estimate is $3.39.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 593 members out of 760 rating the stock outperform, and 167 members rating it underperform. Among 214 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 182 give Tiffany a green thumbs-up, and 32 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 $68.67.
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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.