Consensus estimates

Analysts expect Signet Jewelers (SIG) to post net sales of $2.1 billion in the fourth quarter, which implies a YoY decline of 6.5%. Signet’s top line is expected to take a hit from a decrease in comps. A drop in traffic owing to higher competition and increased promotional spending is likely to hurt Signet’s comps.

Signet’s legacy product line is expected to decline. Meanwhile, higher-than-expected credit costs are likely to remain a drag. Soft sales and pressure on margins from higher promotional investment are anticipated to hurt the bottom line of the company.

What Analysts Expect from Signet’s Fourth Quarter

Analysts expect Signet to post adjusted earnings of $3.82 per share in the fiscal fourth quarter, which implies a YoY decline of 10.7%.

In comparison, rival Tiffany (TIF) posted mixed fourth-quarter results on March 22. The company’s top line missed analysts’ estimate and declined on a YoY basis, reflecting lower tourist spending. Meanwhile, earnings came in ahead of analysts’ estimate thanks to benefits from tax adjustments.

Rating and target price

Among the ten analysts covering Signet Jewelers stock, nine analysts suggest a “hold,” and one analyst has a “sell” recommendation. Analysts have a target price of $26.50 per share on SIG stock, which is on par with its closing price on March 22.

Latest articles

President Trump is not happy with the present Fed rate cut. He wants the cutback to be higher. So high that the interest rates are negative.

Yesterday, Goldman Sachs' strategist warned of high volatility in October. Based on Goldman Sachs' data, since 1928 volatility in October is 25% higher.

On September 19, at Delivering Alpha Conference, Jim Chanos said Grubhub (GRUB) is a very good short. He said that Guruhub is almost not making any money.

The Chinese delegation canceled planned goodwill visits to US farms because of trade war escalations. This affected markets yesterday.

Tesla (TSLA) CEO Elon Musk is one of the most widely followed billionaires on Twitter. His love for Twitter is no secret.

The pace that internet video streaming has evolved is nothing short of revolutionary. Streaming is a serious threat to the cable TV industry.