Signet (SIG, $28.30) beats Q4 earnings estimates, but loses lustre compared to year-ago quarter
Signet Jewelers’ adjusted earnings for its fiscal fourth quarter beat analysts’ expectations, but declined from the year-ago period.
The world's largest retailer of diamond jewellery incurred a net loss of -$116.2 million (or a loss of -$2.25 a share) for the three months ended Feb.2, compared to the year-ago quarter’s profit of $343 million (or $5.24 earnings a share).
However, adjusted earnings of $3.96 a share managed to surpass analysts’ expected $3.81 a share (based on FactSet data).
Signet’s total sales declined from the year-ago period to $2.15 billion, although the figure exceeded consensus estimates of $2.14 billion (based on FactSet data). Same-store sales decreased -2%, slightly steeper than the -1.9% decline expected by analysts.
CEO Virginia Drosos praised the company’s cost cutting strategy and marketing improvement methods, but still acknowledged lower-than-expected performance for the latest quarter citing “a highly competitive promotional environment, continued consumer weakness in the UK, and lower than expected customer demand for legacy merchandise collections that impacted our holiday fourth quarter results."
Looking ahead, Signet expects its adjusted earnings to range between $2.87 and $3.45 per share, in line with current FactSet consensus estimates of $3.13 per share. Its sales forecast ranges between $6 billion and $6.1 billion, also in line with the analysts’ expectations of $6.1 billion.
Momentum Indicator for SIG turns positive, indicating new upward trend
SIG saw its Momentum Indicator move above the 0 level on October 04, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 87 similar instances where the indicator turned positive. In of the 87 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 60 cases where SIG's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
SIG moved above its 50-day moving average on September 12, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for SIG crossed bullishly above the 50-day moving average on September 16, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SIG advanced for three days, in of 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 296 cases where SIG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SIG moved out of overbought territory on October 01, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for SIG turned negative on October 03, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SIG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SIG broke above its upper Bollinger Band on September 13, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 62%.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.028) is normal, around the industry mean (5.688). P/E Ratio (6.576) is within average values for comparable stocks, (51.038). SIG's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.071). Dividend Yield (0.009) settles around the average of (0.024) among similar stocks. P/S Ratio (0.743) is also within normal values, averaging (2.996).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SIG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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an operatorof jewelry stores
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