The firm also increased its 2014 full-year earnings forecast to $4.32 a share from $4.30 a share and upped its fiscal 2015 full-year estimates to $4.82 a share from $4.75 a share.
Sterne Agee said it raised its estimates on the luxury jewelry company as it believes Tiffany's unit sales will continue to improve in the U.S.
Sterne Agee has a "buy" rating and $110 price target on Tiffany stock.
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, increase in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. 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:
- TIF's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 7.2%. 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 64.71%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.50% is above that of the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 16.2% when compared to the same quarter one year prior, going from $106.78 million to $124.12 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 0.88 is somewhat weak and could be cause for future problems.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: TIF Ratings Report