Tiffany Meets on the Top Line, Misses Where It Counts

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Tiffany (NYS: TIF) reported earnings on May 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q1), Tiffany met expectations on revenues and missed estimates on earnings per share.

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


Margins dropped across the board.

Revenue details
Tiffany reported revenue of $819.2 million. The 17 analysts polled by S&P Capital IQ hoped for a top line of $816.5 million on the same basis. GAAP reported sales were 7.6% higher than the prior-year quarter's $761.0 million.

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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 $0.64. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.69 per share. GAAP EPS of $0.64 for Q1 were 1.6% higher than the prior-year quarter's $0.63 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 57.3%, 100 basis points worse than the prior-year quarter. Operating margin was 16.5%, 140 basis points worse than the prior-year quarter. Net margin was 10.0%, 70 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $898.6 million. On the bottom line, the average EPS estimate is $0.75.

Next year's average estimate for revenue is $3.90 billion. The average EPS estimate is $3.73.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 576 members out of 735 rating the stock outperform, and 159 members rating it underperform. Among 205 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 174 give Tiffany a green thumbs-up, and 31 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tiffany is outperform, with an average price target of $74.51.

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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. Motley Fool newsletter services have recommended shorting Tiffany. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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