Market Overview

Macy's's Earnings: A Preview

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Macy's (NYSE: M) announces its next round of earnings this Thursday, November 19. Here is Benzinga's look at Macy's's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Macy's EPS will likely be near $0.79 while revenue will be around $3.85 billion, according to analysts. In the same quarter last year, Macy's reported earnings per share of $0.07 on sales of $5.17 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 1228.57% decrease in the company's earnings. Revenue would be down 25.58% on a year-over-year basis. Macy's's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -1.77 -2.57 1.96 0
EPS Actual -0.81 -2.03 2.12 0.07
Revenue Estimate 3.47 B 3.68 B 8.32 B 5.32 B
Revenue Actual 3.56 B 3.02 B 8.34 B 5.17 B

Stock Performance

Over the past 52-week period, shares of Macy's have declined 37.8%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Macy's is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: Earnings