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Signet (SIG) Queued Up for Q3 Earnings: What's in the Cards?

Signet Jewelers Limited SIG is likely to register a decrease in both the top and bottom lines in its third-quarter fiscal 2023 earnings on Dec 6, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $1,482 million, indicating a 3.8% dip from the prior-year fiscal quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has been stable in the past 30 days at 30 cents per share, implying a 79% decline from the prior-year fiscal quarter’s tally.

In the last reported quarter, Signet’s bottom line outperformed the Zacks Consensus Estimate by 5.5%. This renowned jewelry and accessories retailer has a trailing four-quarter earnings surprise of 36.5%, on average.

Key Aspects to Note

Signet’s performance in the fiscal third quarter might have been hurt by the tough operating landscape, including supply-chain challenges and inflationary pressures. On its last earnings call, management had anticipated a certain shift in consumer discretionary spending from the jewelry category and pent-up demand for experience-oriented categories in the fiscal year.

For the third quarter of fiscal 2023, management had estimated revenues in the $1.46-$1.49 billion range, down from $1.54 billion recorded in the year-earlier fiscal quarter. SIG had anticipated an adjusted operating income of $20-$34 million for the quarter under review.

However, Signet has been taking initiatives to mitigate the supply-chain challenges. SIG’s e-commerce efforts and the Inspiring Brilliance strategy appear encouraging. The Inspiring Brilliance growth strategy focuses on expanding big banners, boosting services, broadening the Accessible Luxury and Value segments, and accelerating digital commerce. SIG aims to enhance the online shopping experience through in-store consultations and services like the buy online, pickup in-store and curbside options.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Signet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Signet Jewelers Limited Price and EPS Surprise

Signet Jewelers Limited Price and EPS Surprise
Signet Jewelers Limited Price and EPS Surprise

Signet Jewelers Limited price-eps-surprise | Signet Jewelers Limited Quote

Signet currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:

lululemon athletica LULU currently has an Earnings ESP of +1.50% and a Zacks Rank #2. LULU is likely to register an increase in the bottom line from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.95 per share over the past 30 days, suggesting 20.4% growth from the year-ago fiscal quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

lululemon athletica’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.80 billion, suggesting a 24.4% rise from the figure reported in the prior-year fiscal quarter. LULU delivered an earnings beat of 10.4%, on average, in the trailing four quarters.

Dollar General DG currently has an Earnings ESP of +1.58% and a Zacks Rank of 2. DG is likely to register top-line growth from the year-ago fiscal quarter’s tally in its third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, suggesting 10.7% growth from the figure reported in the prior-year fiscal quarter.

The Zacks Consensus Estimate for Dollar General’s earnings for the fiscal third quarter is pegged at $2.55 per share, suggesting 22.6% growth from the year-ago fiscal quarter’s tally. The consensus mark has increased a penny in the past 30 days. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.

Casey's General Stores CASY currently has an Earnings ESP of +12.58% and a Zacks Rank of 3. CASY is likely to register top-line growth from the year-earlier fiscal quarter’s actuals when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.16 billion, suggesting 27.5% growth from the figure reported in the prior-year fiscal quarter.

The Zacks Consensus Estimate for Casey's General Stores’ earnings for the fiscal second quarter is pegged at $3.10 per share, suggesting 19.7% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. CASY delivered an earnings beat of 1.3%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Dollar General Corporation (DG) : Free Stock Analysis Report

Signet Jewelers Limited (SIG) : Free Stock Analysis Report

lululemon athletica inc. (LULU) : Free Stock Analysis Report

Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report

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