03:33 PM EDT, 06/04/2024 (MT Newswires) -- Signet Jewelers ( SIG ) fiscal Q1 earnings are expected to top forecasts by analysts after fundamentals improved with industry data on sales and transactions pointing to better trends sequentially, UBS Securities said Tuesday in a report.

UBS expects fiscal Q1 earnings per share of $1.04, $0.10 above consensus, and net sales of $1.53 billion, exceeding the market estimate of $1.51 billion, along with higher gross margin gains.

UBS said selling, general and administrative expenses in the quarter are expected at $514 million, down 2.2% from a year earlier and below the market forecast of $517 million, mainly due to expense management and less store-related costs.

The anticipated fiscal Q1 beat and positive commentary about fiscal Q2 trends may drive the stock price, though sentiment around Signet is bearish, UBS said.

The market remains concerned the "engagement recovery story does not play out given persistent macro headwinds," UBS said.

UBS has a buy rating on the stock and $152 price target. Company results are expected June 13.

Price: 107.65, Change: -0.70, Percent Change: -0.65