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Signet (SIG) Queued Up for Q1 Earnings: What's in the Offing?

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Signet Jewelers Limited (SIG - Free Report) is likely to register both top- and bottom-line growth when it reports first-quarter fiscal 2023 earnings on Jun 9, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $1,812 million, indicating growth of about 7% from the prior fiscal-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has increased a couple of cents in the past 30 days to $2.29 per share, implying growth of 2.7% from the prior fiscal-year quarter’s tally.

In the last reported quarter, Signet’s bottom line outperformed the Zacks Consensus Estimate by 2%. This renowned jewelry and accessories retailer has a trailing four-quarter earnings surprise of 73.8%, on average.

Key Aspects to Note

Signet’s performance in the fiscal first quarter is likely to have gained from growth in its e-commerce sales and the Inspiring Brilliance strategy. SIG is focused on enhancing the online shopping experience through in-store consultations and services like the buy online pickup in-store and curbside options. SIG’s connected-commerce capabilities also appear encouraging. This concept helps combine customer experiences with mobile and delivery by leveraging in-store and online capabilities.

Solid gains from growth initiatives like unique banner value propositions and innovation efforts also bode well. SIG’s Diamonds Direct buyout, known for bridal-focused collections, might also aid the quarterly results. All the aforesaid factors are most likely to have driven SIG’s performance in the quarter under review. On its last earnings call, management projected revenues of $1.78-$1.82 billion and an adjusted operating income of $177-$186 million for first-quarter fiscal 2023.

On the flip side, the ongoing supply-chain disruptions and inflationary pressures remain a concern. These headwinds along with higher selling, general & administrative expenses might have acted as deterrents during the quarter under review.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Signet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Signet Jewelers Limited Price and EPS Surprise

Signet Jewelers Limited Price and EPS Surprise

Signet Jewelers Limited price-eps-surprise | Signet Jewelers Limited Quote

Signet currently has a Zacks Rank #4 (Sell) and an Earnings ESP of -4.16%, making surprise prediction difficult.

Stocks With Favorable Combination

Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings this season:

Kroger (KR - Free Report) currently has an Earnings ESP of +1.65% and a Zacks Rank #2. KR is expected to register bottom-line growth year over year when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.27 suggests growth of 6.7% from the year-ago fiscal quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kroger’s top line is anticipated to rise from the year-ago fiscal quarter’s reading. The consensus mark for revenues is pegged at $43.57 billion, indicating an increase of 4.7% from the year-ago fiscal quarter’s tally. KR has a trailing four-quarter earnings surprise of 22.1%, on average.

Designer Brands (DBI - Free Report) currently has an Earnings ESP of +0.46% and a Zacks Rank of 2. DBI is likely to register year-over-year increase in the bottom line when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 23 cents suggests an increase of 91.7% from the year-ago fiscal quarter’s reported number.

Designer Brands’ top line is expected to increase from the prior-year fiscal quarter’s actuals. The Zacks Consensus Estimate for quarterly revenues is pegged at $839.6 million, which indicates an improvement of 2.7% from the prior-year fiscal quarter’s level. DBI has a trailing four-quarter earnings surprise of 102.5%, on average.

Chipotle Mexican Grill (CMG - Free Report) currently has an Earnings ESP of +2.26% and a Zacks Rank #3. CMG is likely to register an increase in the bottom line from the year-earlier quarter’s tally when it reports second-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $9.06 suggests an increase of 21.5% from the year-ago quarter’s reported number.

Chipotle Mexican Grill’s top line is expected to increase from the last year’s quarterly reading. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.24 billion, which indicates growth of 18.6% from the prior-year quarter’s actuals. CMG has a trailing four-quarter earnings surprise of 9.3%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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