Signet Jewelers Misses on Revenues but Beats on EPS

Signet Jewelers (NYSE: SIG  ) reported earnings on May 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 4 (Q1), Signet Jewelers missed estimates on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.

Gross margins dropped, operating margins were steady, net margins were steady.

Revenue details
Signet Jewelers chalked up revenue of $993.6 million. The nine analysts polled by S&P Capital IQ hoped for a top line of $1.02 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $900.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.13. The 12 earnings estimates compiled by S&P Capital IQ predicted $1.11 per share. GAAP EPS of $1.13 for Q1 were 18% higher than the prior-year quarter's $0.96 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.5%, 80 basis points worse than the prior-year quarter. Operating margin was 14.4%, much about the same as the prior-year quarter. Net margin was 9.2%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $893.6 million. On the bottom line, the average EPS estimate is $0.86.

Next year's average estimate for revenue is $4.19 billion. The average EPS estimate is $4.83.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 73 members out of 95 rating the stock outperform, and 22 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Signet Jewelers a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Signet Jewelers is outperform, with an average price target of $72.63.

Is Signet Jewelers the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.

Add Signet Jewelers to My Watchlist.