Previewing Earnings for lululemon, Nike, Oracle, Tiffany & Others

the BullMarket.com Staff

Stocks tend to be most volatile around earnings season, when a good or bad report can make or break it. However, a good or even great earnings report doesn't necessarily translate into a huge pop for a stock.

During earnings season, BullMarket.com publishes a comprehensive 20- to 30-page Earnings Preview report for the week ahead each Friday. Although earnings season is over, BullMarket.com is publishing two supplemental reports this month.

Over the past year, BullMarket.com used the data it has collected to correctly predict investor reactions for approximately two-third of the stocks it's previewed.

In its latest earnings preview, BullMarket.com looks at several popular stocks, including Nike (NYSE: NKE - News), lululemon (Nasdaq: LULU - News), Darden Restaurants (NYSE: DRI - News), Tiffany (NYSE: TIF - News), FedEx (NYSE: FDX - News), Adobe (Nasdaq: ADBE - News), and Oracle (Nasdaq: ORCL - News).

Here is just a tiny sample of what BullMarket.com wrote about Tiffany:

Tiffany and Company is a jeweler and specialty retailer whose merchandise offerings include an extensive selection of jewelry, as well as timepieces, sterling silverware, china, crystal, stationary, fragrances and accessories.

The jeweler reported better-than-expected earnings for its fiscal third quarter ended October 31st, but its guidance was much more conservative than Wall Street analysts were expecting.

Sales for the quarter that ended October 31st grew by 21% to $821.8 million; growth was 17% on a constant-currency basis, which Investor Relations VP Mark Aaron said exceeded the company's expectations.

Tiffany reported net income of $89.7 million, or 70 cents per share, which was a 63% improvement from the $55.1 million, or 43 cents per share, it reported for Q3 last year.

In the Americas, total sales rose by a better-than-expected 17% to $387.7 million due to an increase in the average price per unit sold. Tiffany said it also continued to see unit sales growth in all price points above $250, "with notable increases at the highest price points," Aaron said. "One example of the stronger activity at the high end was the great success of our annual Blue Book event for top customers held in October."

Sales were up 15% on a comparable-store basis that also excludes the impact of currencies. Comparable-store sales at the flagship New York City store were up by 24%, propelled by strong sales to foreign tourists. Same-store sales at Tiffany's branches outside of NYC grew by 13% during the quarter. ...

After a miss, Tiffany has beaten analyst EPS estimates seven straight quarters. Over the last two years, the stock has risen the next session six of eight quarters. Seasonally, the stock has risen each of the past four years. ...

Outside of earnings, Tiffany is a premier luxury brand that generates some of the highest sales per square foot in the retail space. Japan, which represents about 20% of sales, has been a weak market for the company for quite awhile, but sales were solid last quarter. Meanwhile, the company has seen strength in its other geographies, particularly in China, and overall global expansion opportunities remain strong.

The full BullMarket.com earnings analysis includes a look at historical earnings data and EPS trends for the companies above and more; examines past investor reactions to earnings in various contexts; gives options activity analysis; reviews previous-quarter earnings; and gives an opinion on both what earnings will look like and how investors will react based on the aforementioned data points.

Just a few of the recent correct calls BullMarket.com has made for Q4 were:

  • to be bearish on Deckers (Nasdaq: DECK - News) ahead of earnings.
  • to be bullish on Salesforce.com (NYSE: CRM - News) ahead of earnings.
  • to be bullish on Monster Beverage (Nasdaq: MNST - News) ahead of earnings.
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