Earnings Preview: Tiffany

| About: Tiffany & (TIF)

Company Profile

Tiffany & Co. (NYSE:TIF) is a holding company that operates through its subsidiary companies. The company's principal subsidiary (Tiffany) is a jeweler and specialty retailer whose main merchandise offering is jewelry. Through Tiffany and other subsidiaries, the company is engaged in product design, manufacturing and retailing activities. Its segments include the Americas, Asia-Pacific, Japan, Europe, and Other.

Tiffany is scheduled to report its first-quarter earnings results on May 24, 2012, before the market open.

Technical Overview

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Tiffany has a market cap of $7.85 billion and is currently trading around $61.49, with a 52-week range of $55.72 to $83.43. The stock has -7.15% price performance for 2012. The following table provides key financial ratios for Tiffany:

Key Ratio


Current Ratio






Forward P/E


Profit Margin


Return On Assets (ROA)


Return On Equity (ROE)


Recent News

On May 17, 2012, Tiffany announced that its stockholders elected Robert S. Singer to its board of directors. He joins eight incumbent directors who were re-elected. Singer, who is 60, has held a variety of senior level corporate positions including that of chief financial officer of Gucci Group NV. He will chair the board's audit committee and replaces J. Thomas Presby, who has reached the mandatory retirement age.

Also on May 17, Tiffany announced that its board of directors has declared a dividend of $0.32 per share of common stock, reflecting a 10% increase in the quarterly rate. This action increases the quarterly dividend from $0.29 per share (or $1.16 annually) to a new rate of $0.32 per share (or $1.28 per share annually).

Here is a list of recent changes in analyst ratings for the stock:

  • On May 14, 2012, Tiffany was downgraded to Outperform from Buy at CLSA.
  • On May 8, 2012, Thomas White/Global Capital downgraded Tiffany from Favorable to Neutral.
  • On April 21, 2012, Columbine Capital Services upgraded Tiffany from Unfavorable to Neutral.
  • On April 14, 2012, Columbine Capital Services downgraded Tiffany from Neutral to Unfavorable.
  • On April 9, 2012, Thomas White/Global Capital downgraded Tiffany from Most Favorable to Favorable.
  • On April 9, 2012, Ned Davis Research upgraded Tiffany from Sell to Neutral.
  • On March 30, 2012, Ativo Research downgraded Tiffany from Neutral to Unfavorable.
  • On March 26, 2012, Ned Davis Research downgraded Tiffany from Neutral to Sell.
  • On March 21, 2012, EVA Dimensions, LLC downgraded Tiffany from Hold to Underweight.

Analyst Guidance and Earnings History

The first-quarter revenues are expected to be $816.85 million when compared to $761.02 million for the same quarter last year. Earnings per share for the first quarter are expected to be 69 cents a share, up from 67 cents a share in the year-ago period.

The average price target from analysts for Tiffany is $76.24, with an average rating of Overweight. Out of the last four quarters, Tiffany has met or exceeded the EPS estimates three times. The following chart shows the analyst estimates history and the actual EPS results:

Some of the above data is taken from Google Finance, Yahoo Finance, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in TIF over the next 72 hours.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

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Tagged: , Jewelry Stores, Earnings
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