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Signet's (SIG) Q2 Earnings & Sales Top the Zacks Consensus

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Signet Jewelers Limited (SIG - Free Report) , 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!

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