Shares of Signet Jewelers (SIG) - Get Report were rising 2.73% to $91.22 in mid-afternoon trading on Tuesday after the company posted better-than-anticipated results for the 2017 fiscal third quarter and issued an upbeat outlook for the holiday quarter. The stock hit $99.98 earlier today.
The Hamilton, Bermuda-based owner of Kay Jewelers, Zales and Jared forecasts fourth-quarter adjusted earnings per share in the range of $4.00 to $4.20. Wall Street is looking for earnings of $3.95 per share for the current period, according to FactSet.
Signet now sees fiscal 2017 adjusted earnings per share between $7.38 and $7.58, up from its previous view in August of $7.25 to $7.55 per share. Analysts surveyed by FactSet are expecting earnings of $7.30 per share for the full year.
For the third quarter, the company reported adjusted earnings of 30 cents per diluted share, which handily beat analysts' estimates of 19 cents per share. Revenue slumped 2.5% to $1.19 billion year-over-year, but was slightly above analysts' projections of $1.18 billion.
The revenue decline was due to underperformance in select Jared stores, weakness in energy-dependent regions and decreases in select collections, such as watches, the company said.
Same-store sales dropped 2% during the most recent quarter. Analysts had expected a decline of 4%, according to FactSet.
"We expected challenging market conditions to result in a sales decline. However, our continuing ability to execute in a difficult environment led to results that were somewhat better than our expectations," CEO Mark Light said in a statement, adding that near-term headwinds may persist.
Earlier this year, customers claimed that the company's employees switched out diamonds for lower-quality stones. In June, Light told the Wall Street Journal that the company had not uncovered evidence of diamond-swapping.