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Tiffany's (TIF) Q2 Results Seen as 'Mixed Bag' at Deutsche Bank

August 27, 2015 8:36 AM EDT
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Price: $131.46 --0%

Rating Summary:
    5 Buy, 31 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 12 | Down: 10 | New: 10
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Deutsche Bank maintained a Hold rating on Tiffany & Co. (NYSE: TIF) with a price target of $93. Analyst Francesca Di Pasquantonio charaterized Q2 results a "mixed bag" given strength in comps and softer than expected earnings.

"A mixed bag for TIF Q2 numbers this morning with comps much better than expected and however a 4% adj EPS miss and lowered EPS guidance by 2-5%. While the market ST focus might be on the latter, we highlight that the underlying Q2 developments have been healthy and suggest that TIF is consolidating its status as a global brand while at the same time sales to US domestic consumers were higher yoy," said Pasquantonio.

"Much stronger worldwide comps at 7% 3.6%/3.2% Consensus/DBe, driven by much better Japan (+21% comps vs Consensus/DBe at 6%, boosted by strong tourism business) and Europe (+19% comps vs Consensus/DBe at 10%, with both UK and the continent doing well thanks to foreign tourist spending and somewhat better local demand) while US was disappointing (flat comps vs +1% expected as higher sales to domestic customers were offset by lower tourist spending) and Asia at +6% was in line. (with China and Australia at d-d and mixed performance elsewhere)," continued the analyst.

"Adj EPS at $0.86 (reported $0.81 accounts for $0.05 impairment charge) was short of Consensus/DBe 0.91/0.89$ mainly due to a more negative impact of US$ strength," Pasquantonio added. "In light of a stronger $ impact, and of a more difficult environment management has reduced FY EPS guidance by 2-5% from $4.20 (no growth in Q3 and acceleration in Q4). New EPS $4.0-4.11 down 2-5% yoy."

For an analyst ratings summary and ratings history on Tiffany & Co. click here. For more ratings news on Tiffany & Co. click here.

Shares of Tiffany & Co. closed at $85.08 yesterday.



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