NEW YORK (TheStreet) --Shares of Tiffany & Co. are falling by 8.17% to $95 in pre-market trading on Monday, after the luxury jewelry company announced it cut its full year 2014 earnings guidance in the wake of disappointing 2014 holiday sales. For the full year 2014, Tiffany is forecasting for net earnings of $4.15 to $4.20 per diluted share, while its previous estimate was for earnings in a range between $4.20 and $4.30 per diluted share. Analysts had been expecting Tiffany to post earnings of $4.33 per share for the year ending January 31, 2015. Exclusive Report: Jim Cramer's Best Stocks For 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Tiffany said its 2014 holiday sales had declined by 1%, hurt by weak sales in Japan and the Americas. Separately, TheStreet Ratings team rates TIFFANY & CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate TIFFANY & CO (TIF) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 5.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The gross profit margin for TIFFANY & CO is rather high; currently it is at 64.44%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.98% trails the industry average. The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.88 is somewhat weak and could be cause for future problems. TIFFANY & CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, TIFFANY & CO reported lower earnings of $1.40 versus $3.25 in the prior year. This year, the market expects an improvement in earnings ($4.31 versus $1.40). Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels. You can view the full analysis from the report here: TIF Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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