On Friday, Tiffany&Co. (TIF) will report its fourth quarter earnings. In its third quarter report, it exceeded analysts’ estimates and now for its latest one, it is also supposed to be a good one as expectations anticipate growth for earnings and revenue.?
Options traders are also expecting a rise as bullish contracts have jumped to its?most expensive level in six-plus year as compared to bearish ones, reported Bloomberg.The market has implied a one-day 5.5 percent stock move?(TIF:US) after Friday’s earnings report. As compared to the company’s previous eight earnings reports, it has been an average gain or fall of 2.5 percent.
On Wednesday, calls seeing a 10 percent rally had cost 2.37 points versus bearish bets with a 10 percent fall. On March, this fell to its lowest point since back in September 2007.
Since hitting a Feb. 3 low, Tiffany’s stock has increased 14 percent and earlier in the month, it reached a high last seen when it had its 1987 IPO. And now year-to-date, it is down 1.64 percent.?
So why the bullish sentiment? Some of this has been attributed to consumers looking to actress Angelina Jolie for purchasing ideas such as her recent diamond earrings at a February film festival. Even with the cold winter, shoppers were not deterred; sales at the jeweler increased four percent in the November and December period. ?
Even February’s cold didn’t keep people away.
Dorothy Lakner, a Topeka Capital Markets analyst said to Bloomberg,??The holiday trends have been good. February was the worst month from a weather standpoint, but this business is occasion-based. If people are going to get engaged, they?re going to make that trip to the store.?
As for the recent options activity, Bloomberg noted they didn’t get a comment from the store. At the time of this writing, the stock is trading at $90.89, down 1.90 (2.04%).