Stock Story -
Department store chain Macy’s (NYSE:M) will be reporting results tomorrow before market open. Here’s what to look for.
Macy's (NYSE:M) beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $5.10 billion, down 3.5% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates.
Is Macy's a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Macy’s revenue to decline 6.3% year on year to $4.72 billion, improving from the 7.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Macy's has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.4% on average.
Looking at Macy’s peers in the general merchandise retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Dillard’s revenues decreased 3.5% year on year, beating analysts’ expectations by 1.2%, and Ross Stores (NASDAQ:ROST) reported revenues up 3%, falling short of estimates by 1.5%. Dillard's traded up 9.9% following the results while Ross Stores was also up 2.2%.
Read the full analysis of Dillard’s and Ross Stores’s results on StockStory.
There has been positive sentiment among investors in the general merchandise retail segment, with share prices up 4.1% on average over the last month. Macy's is up 5.4% during the same time and is heading into earnings with an average analyst price target of $17.45 (compared to the current share price of $16.35).