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Tiffany (TIF) to Report Q3: Will its Earnings Lack Luster?

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Tiffany & Co. (TIF - Free Report) is scheduled to release third-quarter fiscal 2016 results on Nov 29. The question in investors’ minds now is whether this jewelry retailer will be able to deliver a positive earnings surprise in the quarter to be reported. Last quarter, the company had posted a positive earnings surprise of 18.3%. In the trailing four quarters, Tiffany outperformed the Zacks Consensus Estimate by an average of 2.8%. Let’s see how things are shaping up for this announcement.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that Tiffany is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Tiffany has an Earnings ESP of -2.99% as the Most Accurate estimate stands at 65 cents, while the Zacks Consensus Estimate is pegged at 67 cents. The company carries a Zacks Rank #3, which increases the predictive power. However, we need to have a positive ESP to be confident about an earnings surprise.

Factors Influencing this Quarter

Tiffany holds a prominent position in the global jewelry market by virtue of its distinctive brand appeal. We believe that the company’s omni-channel platform and store expansion programs bode well. However, foreign currency headwinds and cautious consumer behavior for discretionary products may dampen its performance in the quarter to be reported.

Tiffany's weak top and bottom-line performance remain the primary concern for investors. A look at the company's performance in fiscal 2015 unveils that earnings per share fell 7.9% and 3% year over year in third and fourth-quarter, respectively. Maintaining the same chronological order we observe that net sales also dipped 2.2% and 6%, respectively. During fiscal 2016, earnings per share fell 21% and 2% in first and second-quarter, respectively, while net sales declined 7% and 6% in the respective periods.

TIFFANY & CO Price, Consensus and EPS Surprise


TIFFANY & CO Price, Consensus and EPS Surprise | TIFFANY & CO Quote

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Sanderson Farms, Inc. (SAFM - Free Report) has an Earnings ESP of +4.48% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ascena Retail Group Inc. (ASNA - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank #3.

Express Inc. (EXPR - Free Report) has an Earnings ESP of + 8.33% and a Zacks Rank #3.

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