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Signet (SIG) Queued Up for Q3 Earnings: What's in the Cards?

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Signet Jewelers Limited (SIG - Free Report) is likely to register top- and bottom-line growth when it reports third-quarter fiscal 2022 earnings on Dec 2, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $1,452 million, indicating growth of 12% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has been stable in the past 30 days at 67 cents per share, significantly up from 11 cents registered in the prior-year quarter.

In the last reported quarter, Signet’s bottom line outperformed the Zacks Consensus Estimate by 121.7%. This renowned jewelry and accessories retailer has a trailing four-quarter earnings surprise of 77.5%, on average.

Key Aspects to Note

Signet’s third-quarter top line is likely to have gained from growth in e-commerce sales and the Inspiring Brilliance strategy. SIG’s online growth is backed by efficient measures that boost its omnichannel capabilities. SIG has been introducing technology tools like conversational messaging, improved tech search, virtual try-on, consulting and checkout features for a while. It is consistently integrating its physical stores with digital experiences through data-driven in-store consultations and the buy online pickup in-store and curbside options.

Signet is likely to have benefited from a strong product menu across categories, regions and channels. Its efforts to aid assortments in the Accessible Luxury and Value categories are encouraging. It also focuses on enriching customers’ shopping experience and enhancing tailored merchandise assortments and services.
 
On its last earnings call, management had expected third-quarter revenues in the bracket of $1.42-$1.45 billion, with same-store sales growth between 10% and 12%.

However, we cannot ignore the pandemic-related concerns. Increased selling, general & administrative expenses, and high marketing expenses might have been other concerns.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Signet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Signet Jewelers Limited Price and EPS Surprise

Signet Jewelers Limited Price and EPS Surprise

Signet Jewelers Limited price-eps-surprise | Signet Jewelers Limited Quote

Although Signet has a Zacks Rank of 1, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this season:

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.44% and a Zacks Rank of 2. LULU is expected to register top and bottom-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for LULU’s quarterly revenues is pegged at $1.43 billion, suggesting growth of 28.1% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for lululemon’s quarterly earnings has moved a penny up in the past 30 days to $1.39 per share, suggesting a 19.8% increase from the year-ago reported number. LULU delivered an earnings beat of 25.2%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

PVH Corp. (PVH - Free Report) currently has an Earnings ESP of +1.61% and a Zacks Rank #2. PVH is expected to register top- and bottom-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings of $2.07 per share suggests growth of 56.8% from the year-ago quarter’s reported figure.

The consensus mark for PVH Corp.’s quarterly revenues is pegged at $2.40 billion, indicating an increase of 13.4% from the figure reported in the year-ago quarter. PVH has a trailing four-quarter earnings surprise of 177.5%, on average.

Costco (COST - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank #3. COST is likely to register top- and bottom-line growth when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings has moved 2.8% up in the past 30 days to $2.59 per share, suggesting an improvement of 13.1% from the year-ago quarter’s tally.

The Zacks Consensus Estimate for Costco's quarterly revenues is pegged at $49.6 billion, which suggests growth of 14.8% from the figure reported in the prior-year quarter. COST delivered an earnings surprise of 7.7%, on average, in the trailing four quarters.

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