Signet Jewelers (SIG) is a jewelry retailer. It operates through brands such as Zales, Banter, Diamond Direct, Jared, and Kay Jewelers. The company plans to report its Q2 Fiscal 2023 earnings on September 1, before the opening bell. TipRanks’ Website Traffic tool hints at upbeat results. The report is for the quarter ended July 31.
In a business expansion move, Signet recently acquired online jewelry retailer Blue Nile in a $360 million cash deal. The company has leaned on acquisitions in recent years to fuel its growth. Its other recent acquisitions include Diamonds Direct and Rocksbox.
Signet’s Website Traffic Jump Signals Strong Customer Interest
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, provides insights into Signet’s performance this quarter.
The tool shows that the Signet website recorded a 27.4% increase in global visits in Q2 compared to Q1. Moreover, Signet website traffic has jumped 44.2% year-to-date.
TipRanks’ Website Traffic tool offers insights into customer interest in a company’s products. A rise in website traffic can indicate increased demand for the company’s products, which can indicate strong earnings. In contrast, a decline in traffic trends can suggest weak demand and hint at downbeat earnings.
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What is Wall Street Saying about Signet’s Q3 Earnings?
Wall Street expects Signet to deliver EPS of $2.59 on revenue of $1.75 billion. Signet’s internal guidance calls for revenue of nearly $1.75 billion. It did not provide EPS guidance. Citing tightening consumer spending because of inflation, the company lowered its revenue outlook to $1.75 billion from the previous outlook range of $1.79 billion to $1.82 billion. In the year-ago quarter, Signet reported EPS of $3.57 on revenue of $1.79 billion. Those results surpassed Wall Street expectations.
Is Signet Jewelers Stock a Buy?
Signet stock has dropped almost 30% year-to-date. According to TipRanks’ analyst rating consensus, SIG stock is a Moderate Buy based on two Buys and three Holds. The average SIG stock forecast of $79.20 implies 20.1% upside potential.
Signet stock is getting favorable mentions on financial blogs. TipRanks data shows that financial blogger opinions are 93% bullish on SIG stock, compared to a sector average of 64%.
Final Thoughts
Signet lowered its Q2 revenue outlook on inflation concerns. However, website traffic trends suggest that the company continued to see strong customer interest in its products during the quarter. As a result, the upcoming earnings report may deliver a pleasant surprise for SIG stock investors.
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