Signet Jewelers Limited (NYSE:SIG) , retailer of diamond jewelry, watches, and other products, came out with its second-quarter fiscal 2018 results, wherein earnings came in at $1.33 per share. This included a one-time gain of 12 cents, and a one-time cost of 4 cents per share. The Zacks Consensus Estimate stood at $1.10. Further, the company recorded earnings of $1.06 per share in the prior year period. Notably, Signet’s current quarter earnings comprise a positive impact of about 15 cents on account of the timing of Mother's Day holiday.
Management raised its earnings per share projection to a band of $7.16 - $7.56 for fiscal 2018.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2018 has witnessed a downward revision over the past 7 days. In the trailing four quarters (excluding the quarter under review), the company underperformed the Zacks Consensus Estimate by an average of 0.4%.
Signet Jewelers Limited Price and EPS Surprise
Signet Jewelers Limited Price and EPS Surprise | Signet Jewelers Limited Quote
Revenues: Signet generated total revenue of $1,399.6 million that climbed 1.9% year over year, and also beat the Zacks Consensus Estimate of $1,335 million. Same store sales rose 1.4%. Management still expects fiscal 2018 same store sales to decline in the low-to-mid single-digit percentage.
Key Events: Signet announced an agreement to buy R2Net, which owns popular online jewelry retailer – JamesAllen.com, as well as Segoma Imaging Technologies that enhances digital shopping experiences. Priced at $328 million, this deal will combine Signet’s retail jewelry business with R2Net’s solid digital operations. This move falls in sync with Signet’s omni-channel transformation.
Further, the company repurchased 8.1 million shares for $460.0 million. The company also authorized a new buyback plan in June, which brings its total authorization to $650.6 million, as of Jul 29, 2017.
Zacks Rank: Currently, Signet carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Movement: Signet’s shares are up over 15% during pre-market trading hours following the earnings release.
Check back later for our full write up on Signet’s earnings report!
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
Signet Jewelers Limited (SIG): Free Stock Analysis Report
Original post
Zacks Investment Research