Signet Jewelers Hits Estimates in Solid Quarter

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Signet Jewelers (NYS: SIG) reported earnings on March 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Signet Jewelers met expectations on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.

Margins improved across the board.

Revenue details
Signet Jewelers recorded revenue of $1.35 billion. The seven analysts polled by S&P Capital IQ expected revenue of $1.36 billion on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $1.27 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.79. The eight earnings estimates compiled by S&P Capital IQ anticipated $1.77 per share. GAAP EPS of $1.79 for Q4 were 47% higher than the prior-year quarter's $1.22 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 41.6%, 80 basis points better than the prior-year quarter. Operating margin was 18.0%, 1,020 basis points better than the prior-year quarter. Net margin was 11.6%, 330 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $916.0 million. On the bottom line, the average EPS estimate is $0.93.

Next year's average estimate for revenue is $3.93 billion. The average EPS estimate is $4.17.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 70 members out of 88 rating the stock outperform, and 18 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Signet Jewelers a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Signet Jewelers is outperform, with an average price target of $56.02.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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