NEW YORK (TheStreet) -- Shares of Tiffany & Co. (TIF - Get Report) are higher by 1.03% to $101.26 on heavy trading volume on Tuesday afternoon, ahead of the company's 2014 second quarter earnings report, which is scheduled to be released before the market opens on Wednesday.
So far, 1.11 million shares of Tiffany's have exchanged hands as compared to its average daily volume of 782,000 shares.
The FactSet consensus estimate has forecast for a profit of 85 cents per share, compared to Tiffany's 2013 second quarter profit of 83 cents per share.
Analysts expect Tiffany's sales to increase to $987.5 million, from $926 million for the same period last year.
Separately, TheStreet Ratings team rates TIFFANY & CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIFFANY & CO (TIF) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 13.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for TIFFANY & CO is rather high; currently it is at 63.17%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.41% is above that of the industry average.
- Net operating cash flow has significantly increased by 3255.93% to $76.62 million when compared to the same quarter last year. In addition, TIFFANY & CO has also vastly surpassed the industry average cash flow growth rate of 25.53%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 50.3% when compared to the same quarter one year prior, rising from $83.58 million to $125.61 million.
- The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.90 is somewhat weak and could be cause for future problems.
- You can view the full analysis from the report here: TIF Ratings Report
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