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SIG Earnings: Signet Jewelers’ Stock Rallies on Strong Financial Results

SIG Earnings: Signet Jewelers’ Stock Rallies on Strong Financial Results

The stock of Signet Jewelers (SIG) is rising on an otherwise down day for equities after the retail jewelry store chain reported second-quarter financial results that topped Wall Street forecasts.

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Signet, which owns branded stores such as Kay Jewelers, Zales, and Blue Nile, reported revenue of $1.54 billion, which was up 3% from a year earlier and ahead of the $1.50 billion consensus expectation of analysts. Earnings per share (EPS) for the quarter totaled $1.61, which topped the $1.24 that had been forecast on Wall Street.

Signet Jewelers also raised its forward guidance, saying it now expects full-year earnings of $8.04 to $9.57, up from a previous forecast of $7.70 to $9.38. Management also said they anticipate revenue of $6.67 billion to $6.82 billion, compared with a previous outlook of $6.57 billion to $6.80 billion.

Bright Outlook

Signet also gave a positive outlook for the current quarter, saying sales will likely range from $1.34 billion to $1.38 billion. The midpoint of that range, $1.36 billion, is ahead of the $1.34 billion analysts were forecasting.

In its earnings statement, Signet said that its current outlook reflects a “measured consumer environment, providing for variability in consumer spending over the holiday season.” The forecast also takes current tariff rates into account, particularly levies on imports from India where diamonds are cut and polished.

SIG stock is up 1% on Sept. 2 immediately after its latest financial results were made public. The shares have gained 12% this year.

Is SIG Stock a Buy?

The stock of Signet Jewelers has a consensus Moderate Buy rating among six Wall Street analysts. That rating is based on three Buy and three Hold recommendations issued in the last three months. The average SIG price target of $90.80 implies 2.96% upside from current levels. These ratings are likely to change after the company’s financial results.

Read more analyst ratings on SIG stock

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