Signet Jewelry Shares Are on Track for Their Best Day of the Year Following a Strong Earnings Report
Signet Jewelers' stock surged following the release of its financial results / Photo: LinkedIn / signetjewelers
Shares of Signet Jewelers, the mid-cap owner of the Jared and Kay Jewelers jewelry brands, surged more than 11% in premarket trading on September 9—its best performance in over a year. The company’s quarterly earnings exceeded Wall Street expectations, allowing Signet to raise its full-year forecast.
Details
Signet shares rose more than 11% in premarket trading on September 9. If this trend continues during the regular trading session, it will mark the company’s best gain in more than a year, according to Barron’s .
According to Signet, for the second quarter of fiscal year 2027, which ended on August 1, its adjusted earnings per share (EPS) rose 36% to $2.19. Analysts had expected this figure to be $1.74, according to Yahoo Finance.
This performance has allowed Signet to raise its EPS forecast for the full fiscal year for the second consecutive time: from $9.2–$11 to $10.45–$12.15.
This valuation will be influenced, among other things, by the planned accelerated $125 million share buyback program, said Chief Operating and Financial Officer Joan Hilson. According to her, this will allow Signet to increase its return on equity year-to-date to 12% of its current market capitalization. At the close of trading on September 8, the company’s market value stood at $3.35 billion.
Signet's annual revenue remained virtually unchanged at $1.5 billion. Same-store sales rose 2.2%, while Wall Street had expected a 1.9% increase.
What Analysts Are Saying
Wall Street analysts' opinions on Signet's outlook are almost evenly split: the company's stock has seven "hold" ratings and six "buy" recommendations. The average price target is $111.8, which implies upside potential of more than 35% relative to the closing price on September 8.
