Tiffany & Co. Earnings: Consecutive Profit Quarter Streak Stays Intact

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S&P 500 (NYSE:SPY) component Tiffany & Co. (NYSE:TIF) reported its results for the second quarter. Tiffany & Co. is a jeweler and specialty retailer that sells timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories.

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Tiffany & Co. Earnings Cheat Sheet

Results: Net income for Tiffany & Co. rose to $91.8 million (72 cents per share) vs. $90 million (69 cents per share) in the same quarter a year earlier. This marks a rise of 2% from the year-earlier quarter.

Revenue: Rose 1.6% to $886.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tiffany & Co. fell short of the mean analyst estimate of 75 cents per share. It beat the average revenue estimate of $816.9 million.

Quoting Management: Michael J. Kowalski, chairman and chief executive officer, said, “These second quarter results met the expectations contained in our previously-reported financial guidance. Not surprisingly, sales growth has been affected by economic weakness in a number of markets and by a very challenging prior-year comparison to a 30% increase in worldwide net sales. We also anticipated the reduced operating margin in the quarter, adjusted for nonrecurring items, due to continued, but moderating, high product input costs and a lack of sales leverage on fixed costs. The resulting decline in net earnings, when compared with last year’s earnings excluding nonrecurring costs, was in line with our expectations and was on top of a 58% increase in last year’s second quarter.”

Key Stats:

Revenue has increased for four consecutive quarters. Revenue increased 7.6% to $819.2 million in the first quarter. The figure rose 7.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 20.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 5 cents in the first quarter and by 3 cents in the fourth quarter of the last fiscal year.

Net income has increased 19.4% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 62.8% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 76 cents a share to 67 cents over the last ninety days. At $3.67 per share, the average estimate for the fiscal year has fallen from $3.99 ninety days ago.

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

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