Signet Jewelers (SIG) Stock Plunges on Earnings Miss

Signet Jewelers (SIG) stock is down in mid-morning trading on Tuesday, after the jeweler reported lower-than-expected fiscal 2016 third quarter earnings results.
By Amanda Albright ,

NEW YORK (TheStreet) -- SignetJewelers  (SIG) - Get Report stock is declining by 5.85% to $132.50 in mid-morning trading on Tuesday, after the jeweler's fiscal 2016 third quarter earnings results missed analysts' expectations.

The Bermuda-based retailer, which operates the Jared and Zales stores, reported earnings of 33 cents per share. Revenue increased by 3.3% year over year to $1.21 billion.

Analysts were expecting the company to report earnings of 39 cents per share on revenue of $1.23 billion for the most recent quarter.

Earnings were affected by a modest margin impact due to a sales mix shift from Jared to Kay Jewelers, the company said.

"We are currently experiencing an encouraging start to November particularly at Jared and Zales," CEO Mark Light said in a statement. "The implementation of store operations initiatives in the third quarter combined with significant investment in our recently launched innovative merchandising and marketing programs have positioned Signet for a strong fourth quarter."

Separately, TheStreet Ratings team rates SIGNET JEWELERS LTD as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate SIGNET JEWELERS LTD (SIG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

You can view the full analysis from the report here: SIG

SIG

data by

YCharts

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

Loading ...