Market Overview

Macy's Earnings To Hit Low End Of Cycle?

Share:

Macy's, Inc. (NYSE: M) is scheduled to announce first quarter financial results on Wednesday morning.

A look at crowdsourced site Estimize provides a clear idea of what to expect.

The company’s earnings respond to a cycle. Earnings tend to peak on the fourth quarter, and hit lows in the first and third quarters.

After delivering earnings of $2.44 per share on revenue of $9.364 billion last quarter, the Street expects earnings of $0.61 per share on revenue of $6.316 billion for the current quarter. The crowd is slightly more positive, and projects earnings of $0.62 per share on revenue of $6.374 billion.

These figures compare to earnings of $0.60 and revenue of $6.279 billion reported in the same quarter last year, and to EPS of $0.55 and revenue of $6.387 billion registered in the first quarter of 2013.

A second chart illustrates the evolution of estimates over time. Experts’ sentiment has been becoming increasingly bearish since January. The crowd weighed in just recently, and expectations have also been declining as earnings loom.

Macy’s Predicament

In a recent report, analysts at Sterne Agee CRT previewed mixed earnings for Macy’s. They expect earnings of $0.60 per share; the "estimate is predicated on 'flat' sales growth driven by a 1.9% drop in square footage, offset by the aforementioned 1.5% comp estimate,” the note explained.

Bottom Line: "Decelerating sales and lack of margin growth are rarely the ingredients for a winning investment and Macy's finds itself in that predicament."

Latest Ratings for M

DateFirmActionFromTo
Mar 2020CitigroupMaintainsSell
Mar 2020Morgan StanleyMaintainsUnderweight
Feb 2020CFRAMaintainsHold

View More Analyst Ratings for M
View the Latest Analyst Ratings

 

Related Articles (M)

View Comments and Join the Discussion!

Posted-In: CRT EstimizeAnalyst Color Previews Crowdsourcing Analyst Ratings Trading Ideas General

Latest Ratings

StockFirmActionPT
RIGRF LaffertyMaintains5.0
NOVRF LaffertyMaintains13.0
WSCDA DavidsonMaintains19.0
ITTDA DavidsonReiterates70.0
NOWGoldman SachsMaintains376.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com