Tiffany Misses Where It Counts

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
For the quarter ended Jan. 31 (Q4), 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 dropped slightly.

Margins contracted across the board.

Revenue details
Tiffany chalked up revenue of $1.19 billion. The 16 analysts polled by S&P Capital IQ foresaw sales of $1.19 billion on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $1.10 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 $1.39. The 18 earnings estimates compiled by S&P Capital IQ anticipated $1.42 per share. GAAP EPS of $1.39 for Q4 were 1.4% lower than the prior-year quarter's $1.41 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 60.4%, 50 basis points worse than the prior-year quarter. Operating margin was 24.1%, 280 basis points worse than the prior-year quarter. Net margin was 15.0%, 150 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $817.1 million. On the bottom line, the average EPS estimate is $0.70.

Next year's average estimate for revenue is $3.95 billion. The average EPS estimate is $3.94.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 568 members out of 725 rating the stock outperform, and 158 members rating it underperform. Among 211 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 182 give Tiffany a green thumbs-up, and 29 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 $70.75.

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At the time thisarticle 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 buying puts on 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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