What to Expect From Tiffany Earnings

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Tiffany & Co. (NYSE: TIF) is scheduled to report its fiscal first-quarter financial results before the markets open on Wednesday. The consensus estimates from Thomson Reuters call for $0.68 in earnings per share (EPS) on $914.94 million in revenue. In the same period of last year, the specialty retailer posted EPS of $0.81 and $962.40 million in revenue.

When the company reported earnings back in March, it issued guidance for the fiscal first-quarter of a diluted EPS decline of 15% to 20%, followed by a 5% to 10% decline in the second quarter, with a resumption of growth in the second half of the year.

The company was weighed down in the first quarter by unfavorable foreign exchange rates and an overly strong dollar, hence the near-term weak guidance.

Tiffany’s longer-term objective calls for reaching high-single-digit net earnings growth, driven by mid-single-digit worldwide net sales growth on a constant-exchange-rate basis, while also continuing to generate strong free cash flow.

A few analysts weighed in on Tiffany ahead of the earnings release:

  • Nomura reiterated a Buy rating.
  • Cowen has a Market Perform rating with a $68 price target.
  • Wells Fargo reiterated an Underperform rating with a $58 price target.
  • Oppenheimer reiterated a Buy rating.
  • Jefferies initiated coverage with a Buy rating.

So far in 2016, Tiffany has underperformed the broad markets, with the stock down about 16%. Over the past 52 weeks, the stock was down 25%.

Shares of Tiffany were trading at $64.15 Tuesday afternoon. The stock has a consensus analyst price target of $81.29 and a 52-week trading range of $59.73 to $96.43.