Goldman Sachs Has Muted Holiday Outlook on Tiffany & Co., PT & Estimates Under Review
Goldman Sachs has published a research report on Tiffany & Co. (NYSE: TIF) after the company reported 3Q operating results that were way ahead of consensus estimates.
In the report, Goldman Sachs writes, "TIF reported 3Q operating EPS of $0.70, well ahead of GS/consensus at $0.61/$0.61. Upside to the quarter was predominantly driven by SG&A leverage, which improved 314 bp yoy. This helped to offset 61 bp of gross margin contraction due to mix-shift towards higher-ticket goods and commodity cost pressures, the first quarter of GM contraction since 4QFY09. Management opted to flow through only $0.05 of the beat to raise FY2011 EPS guidance to $3.70-$3.80 from $3.65-$3.75, noting that 4Q-to-date sales are in line with low-teens expectations despite weakness in Europe and the eastern United States."
Goldman Sachs currently has its price target under review but maintains its Neutral rating on Tiffany & Co., which is currently trading down $5.93 from yesterday's $73.62 closing price.
