NEW YORK (TheStreet) -- Shares of Signet Jewelers (SIG - Get Report) closed intraday trading up by 2.22% to $140.65 on Monday, ahead of the release of the company's third quarter earnings results, due out before the bell on Tuesday morning.
The Bermuda-based jewelry retailer is expected to report earnings of 39 cents per share, an 85% rise over the same period last year.
Sales for the period are expected to climb 3% over the previous year to $1.23 billion.
In the year ago quarter the company reported earnings of 21 cents per share on revenue of $1.2 billion.
Signet Jewelers operates Kay Jewelers, Jared and Zale stores.
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.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.2%. Since the same quarter one year prior, revenues rose by 14.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SIG has a quick ratio of 1.50, which demonstrates the ability of the company to cover short-term liquidity needs.
- 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, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- SIGNET JEWELERS LTD has improved earnings per share by 8.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, SIGNET JEWELERS LTD increased its bottom line by earning $4.74 versus $4.57 in the prior year. This year, the market expects an improvement in earnings ($6.88 versus $4.74).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income increased by 7.2% when compared to the same quarter one year prior, going from $58.00 million to $62.20 million.
- You can view the full analysis from the report here: SIG