NEW YORK (TheStreet) -- Shares of Signet Jewelers Ltd. (SIG) are higher by 6.22% to $114.75 in mid-morning trading on Thursday, after the company reported fiscal 2015 second quarter adjusted earnings per share of $1, which exceeded the consensus estimate of 98 cents per share.
The company, which owns the jewelry stores Kay Jewelers and Jared the Galleria of Jewelry, posted a 39% increase in total sales to $1.23 billion for the most recent quarter, up from $880.2 million for the fiscal 2014 second quarter.
Analysts were expecting $1.19 billion in revenue.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
The company's boost in sales was the result of its $1.46 billion acquisition of the jewelry retailer Zale Corp. (ZLC) . The merger created one of the world's largest jewelry retailers with 3,600 locations, MarketWatch reports.
However, the company said net income for the fiscal 2015 second quarter dropped to $58 million, or 72 cents per share, from $67.4 million, or 84 cents per share for the year ago period.
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, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
You can view the full analysis from the report here: SIG Ratings Report