Tiffany & Co. (NYSE: TIF) is having an incredibly strong start to the trading session this morning after the company reported its earnings for the second quarter, blowing away expectations. Of course, the strong earnings excited invesotrs, leading to a frenzy on the stock and sending it upward. Today, we’ll talk about:
- The earnings report;
- what we’re seeing from TIF stock as a result; and
- what we’ll be watching for ahead.
TIF Blows Away Earnings Expectations
As mentioned above, Tiffany & Co. is having an incredibly strong start to the trading session this morning after reporting incredible earnings. Here’s what we saw from the report:
- Earnings – In terms of earnings, the company did overwhelmingly well. During the second quarter, the company generated earnings in the amount of $144.7 million. That works out to $1.17 per share. Analysts expected that the company would produce earnings in the amount of $1.00 per share.
- Revenue – Revenue also proved to be positive. During the quarter, analysts expected that TIF would generate revenue in the amount of $1.04 billion. However, the company reported revenue in the amount of $1.08 billion, once again beating expectations.
- Guidance – Finally, in terms of guidance, the company is expecting to see strong earnings on a full-year basis. During the full year, it is expecting to generate between $4.65 per share and $4.80 per share in earnings.
In a statement, Alessandro Bogliolo, CEO At TIF, had the following to offer:
While in the early stages of addressing our six key strategic priorities, we are pleased with initial customer reactions to our new communication, product and in-store initiatives. The launch of PAPER FLOWERS, a floral collection in platinum and diamonds, is moving toward full global distribution and we believe our evolved brand message is gaining momentum. Our activities in these areas will further accelerate in the remainder of the year with special focus on product personalization, high jewelry, a whimsical holiday campaign and the unveiling in North America of TIFFANY TRUE, an innovative diamond ring concept.
We are pleased with our sales and earnings growth and the strength and breadth of the results in the first half of 2018, but it’s worth noting that strategic investment spending is increasing for the remainder of the year, as expected, which is intended to support longer-term sustainable growth. Regarding that longer-term horizon, we are very excited to embark on our recently announced transformative multi-year remodeling of the New York City flagship building. We believe that the thoughtful combination of making short- and long-range strategic investments is necessary to achieve the full growth potential of this legendary brand.
What We’re Seeing From The Stock
One of the first lessons that we learn is that the news moves the market, and news of strong earnings tends to do just that. In the case of Tiffany & Co., the news proved to be overwhelmingly positive, exciting investors and sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:58), TIF is trading at $138.20 per share after a gain of $8.42 per share or 6.49% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TIF. In particular, we’re interested in following the story surrounding the company’s the company’s continued growth as it is smashing expectations at the moment. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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