Will Tiffany (TIF) Beat Earnings? - Analyst Blog

We expect Tiffany & Co. TIF, the designer, manufacturer and retailer of fine jewelry, to beat expectations when it reports fourth-quarter fiscal 2013 results on March 21, 2014. In the last quarter, it posted a positive surprise of 25.9%.

Why a Likely Positive Surprise?

Our proven model shows that Tiffany is likely to beat earnings because it has the right combination of two key components.  

Positive Zacks ESP: Tiffany currently has an Earnings ESP of +0.66%. This is because the Most Accurate estimate stands at $1.53, while the Zacks Consensus Estimate is pegged at $1.52.

Zacks Rank #3 (Hold): Note that stocks with a Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings estimates. The sell-rated stocks (Zacks Rank #4 and #5) should never be considered going into an earnings announcement.

The combination of Tiffany's Zacks Rank #3 (Hold) and +0.66% ESP makes us very confident regarding a positive earnings beat on March 21.

What is Driving the Better-than-Expected Earnings?

We believe Tiffany holds a significant position in the world jewelry market, and its long-term growth prospects remain encouraging given its new product launches and focus on enhancing its geographic reach through store expansion program. We believe that with more emphasis on the new collection, cost containment efforts, inventory management and the global distribution platform, Tiffany remains well positioned to sustain the growth momentum.

The company in the last four quarters has outperformed the Zacks Consensus Estimate by an average of 18.1%.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows these have the right combination of elements:

Foot Locker, Inc. FL has an Earnings ESP of +1.92% and a Zacks Rank #2 (Buy).

The Kroger Co. KR has an Earnings ESP of +0.96% and a Zacks Rank #2 (Buy).

Nike, Inc. NKE has an Earnings ESP of +4.11% and a Zacks Rank #3 (Hold).