NEW YORK (TheStreet) -- Tiffany & Co. (TIF) - Get Tiffany & Co. Report stock is advancing 2.34% to $76.90 on heavy trading volume on Monday afternoon before the company releases its financial results for the fiscal 2015 third quarter, due out before the market open on Tuesday.
The jewelry company is expected to report a year-over-year decline in earnings, but a 1.2% increase in revenue.
Analysts have forecasted earnings of 75 cents per share on $971 million in revenue for the latest quarter.
Last year, Tiffany posted earnings of 76 cents per share on revenue of $959.59 million for the quarter ended October 31, 2014.
The company's latest results may miss estimates because of a negative impact from foreign exchange rates and soft sales in Asia and Europe, according to Mizuho Securities, Barron's reports.
Analysts will also be looking at Tiffany's fourth quarter guidance since it will include expectations for the upcoming holiday season, Barron's added.
So far today, 2.74 million shares of Tiffany have exchanged hands, compared with its average daily volume of 1.47 million shares.
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 multiple 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 largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, TIF has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for TIFFANY & CO is rather high; currently it is at 64.86%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.57% is above that of the industry average.
- Net operating cash flow has significantly increased by 118.29% to $166.30 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 3.67%.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, TIFFANY & CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- TIFFANY & CO's earnings per share declined by 15.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TIFFANY & CO increased its bottom line by earning $3.73 versus $1.40 in the prior year. This year, the market expects an improvement in earnings ($4.04 versus $3.73).
- You can view the full analysis from the report here: TIF
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.