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  • Tiffany (TIF): What To Expect On Earnings

    Tiffany & Co. (NYSE:TIF) will announce their first quarter earnings forecast on Tuesday morning. Analysts expect the jewelery store to report an EPS of 53 cents on $855.8 million. In the last few days, Tiffany's has recently upped the quarterly dividend by 6.3%. It was previously at 32 cents a share and now it is at 34 cents. Tiffany's did this in hopes that the company would look more enticing for investors.

    Earlier this month Institutional Insider reported analyst Paul Lejuez from Wells Fargo downgraded Tiffany's to market perform from out perform. Last month Daniela Nedialkova from Atlantic Equities also downgraded Tiffany & Company to neutral from overweight.

    Although the company has been downgraded, this is not necessary a bad thing for the company that has struggled in the past. The company saw their stock plummet as competitors offered the same quality jewelry at significantly lower prices. Once the economic rescission hit, people did not spend as lavishly as they once did which also hurt the company's revenue. With a stronger dollar and the economy getting back on track, Tiffany's could very well rebound on Tuesday.

    An American jewelry company that is known for their elegant and lavish jewelry, Tiffany's was founded in 1837 and has been a respected company ever since. With headquarters on Fifth Avenue in New York City, Tiffany's oozes elegance. They are known for their beautiful and sparkling diamonds as well as their engagement rings.

    Volatility on earnings will be heightened due to the tremendous profit increase seen by jewelry competitor Zales (NYSE:ZLC). The street has recently upgraded the stock to a buy.

    May 27 2:16 PM | Link | Comment!
  • Toll Brothers (TOL) Earnings Beat Could Be Leading Indicator Of Things To Come

    Record low interest rates, held down by a massive money print from Ben Bernanke and the Fed, has let to dramatically improved demand in the housing sector. After struggling for several years with many building even declaring bankruptcy, the rebound looks here to stay. Toll Brothers recently reported Q2 results topped street expectations nearly across the board and robust results implies further upside from other builders. Looking at the details, deliveries of 895 units with a strong backlog of over 3600 units indicates more growth is coming. Earnings per share for Q2 of 0.14 topped street expectations of just $0.07. Others that could see further strength in coming weeks include Hovanian (NYSE:HOV), Meritage(NYSE:MTH), and Ryland(NYSE:RYL).

    Despite share gains over the last year in excess of 50%, many believe the housing rebound remains in the early stages and those leveraged to its return to prominence could see dramatic upside later in 2013. Also on the bullish side for homebuilders and the sector RealtyTrac reported that in April foreclosures declined by an impression 23%. As inventory finally moves, this could spark demand for new home sales. Also consistent with improved inventory trends April existing home sales were reported to have rebounded to the best levels seen since 2008. One concern would be if Bernanke were to depart this position as chief money printer, the next chairman could be more fiscally and monetarily responsible. Heading into the next few fed meetings the market and investors will certainly pay close attention to how much further QE infinity can continue as well as a possible unwind strategy. Until then, the risk on trade, with homebuilders leading the charge is poised to continue to gain momentum

    Tags: TOL, HOV, LL, housing
    May 23 1:44 PM | Link | Comment!
  • Strong Outlook From Mattress Firm (MFRM) Bullish For Tempurpedic (TPX)?

    Despite slightly missing earnings expectations for Q4, recent IPO Mattress Firm(NASDAQ:MFRM) provided a solid 2013 outlook, noting comps would eventually turn out in the low to mid single digit range. Q4 revenues missed consensus, coming in at $258 million, compared with expectations of $262 million, yet analysts shrugged off the miss on expectations that FY 2013 guidance appeared conservative. Analysts also noted easing comparisons for the balance of the year as early 2012 was exceptionally strong. The mattress industry has been a hotbed of Wall Street activity of late with extreme volatility in Mattress Firm (MFRM), Select Comfort (NASDAQ:SCSS) and Tempurpedic (NYSE:TPX). Select Comfort and Tempurpedic shares both rallied close to 7% on the heels of the positive tone of MFRM's call.

    With the recent comeback after worries of industry stagnation and on housing optimism, shares of Mattress Firm(MFRM) are now up a staggering 60% since its late 2011 IPO. On the heels of the bullish tone set by management during their Q4 call, Wedbush analysts Joan Storms raised her price target to $35 from $30 and suggested that the 2013 outlook was on the conservative side. Other analysts were generally bullish with Barclays, UBS and Wedbush all optimistic for the balance of 2013. Dramatically different weather patterns for 2013 could have had an impact on comps for the first quarter. Looking back at the fourth quarter the investment community wrote off the negative comps as one time issue.

    Looking ahead, Tempurpedic (TPX) will report Q1 earnings and more importantly update its outlook for 2013 as well report progress on the Sealy acquisition the first week of May. The consensus calls for a 12% revenue decline as Tempurpedic attempts to regain lost share. It will launch the "Tempur Choice" designed to compete with Select Comfort's highly successful "Sleep Number" for sleep personalization settings. It is set to debut at a breathtaking price point above $3000. Last year new competition in the memory foam space stifled growth and analysts were caught off sides and growth slowed to a halt despite a myriad of uber-bullish expectations and price targets in the nose bleed $100 range. One of the worst analysts on the Street has been Oppenheimer's Joseph Altobello who called early 2012 guidance "conservative" only to see earnings cut in half over the next few months but call the market reaction an "overreaction" and maintained his buy all the way down before capitulating with a downgrade to Market Perform at the multi-year low of $22. Shares have doubled since his downgrade so bullish investors might remain confident until this contrarian analyst again becomes bullish at which time smart investors would be wise to get cautious.

    Mar 28 11:41 AM | Link | Comment!
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