Signet Jewelers Hits Estimates in Solid Quarter

Seth Jayson, The Motley Fool
Updated

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 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. 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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