Macy's Inc Q3 earnings: What to look for

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Macy's Inc Q3 earnings: What to look for

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 Macy's Inc Q3 earnings: What to look for
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Highlights

  • Most analysts expect the Ohio-based firm to report EPS growth of US$0.31 in the third quarter.

  • In the quarter ended July 2021, its EPS was US$1.29 against analysts’ expectations of US$0.22.

  • Macy’s net income in the July quarter was US$345 million, or US$1.08 per share.

Retail store operator Macy's Inc (NYSE: M) is expected to post positive EPS growth in its third quarter compared to a decline of US$(0.19) in the corresponding period a year ago.

Furthermore, analysts expect a 12-month median target of US$25.30 for the stock, with a high of US$37.00 and a low of US$15.00. The median denotes about an 18% drop from its last closing price.

Macy’s Inc is expected to report its third-quarter results for FY 2021 on Thursday, Nov 18.

Most analysts expect the Ohio-based firm to report EPS growth of US$0.31 in its third quarter. In the previous quarter ended July 2021, its EPS was US$1.29 against analysts’ expectations of US$0.22.

But in the quarter ended in April 2021, Macy’s EPS of US$0.39 was below expectations. Analysts had predicted an EPS growth of US$0.41.

In Q3 ended Oct 2020, Macy’s EPS was down 0.19% against an expected loss of 0.81%.

Additionally, in the fiscal quarter ended Jan 2022, the consensus EPS forecast is US$1.88, with the highest of US$1.97 and the lowest of US$1.79.

Stock Performance

Macy’s Inc stock was trading at US$30.88 at 10:37 am ET on Monday, an increase of 1.38% from the previous close. The stock gained more than 175% year-to-date.

Its 52-week highest and lowest stock prices were US$31.96 and US$6.97, respectively.

Macy’s current market cap is around US$9.50 billion.

Macy’s Inc is expected to report its third-quarter results for FY 2021 on Thursday, Nov 18. 

Source: Pixabay

Second-Quarter Snapshot

Macy’s net income for the quarter ended July 31 rose to US$345 million, or US$1.08 per share, against a net loss of US$431 million, or US$1.39 per share, in the same period a year ago.

The company earned US$1.29 per share during the quarter, beating analysts’ expectations.

In addition, its net sales grew to US$5.65 billion from US$3.56 billion a year ago, exceeding analysts’ estimates of US$5.01 billion.

Its operating income was US$597 million against a loss of US$631 million a year ago.

Also, it had cash of around US$2.1 billion at the end of the second quarter.

Bottomline

Analysts expect most retail companies to post improved results in the third quarter, driven by strong demand for various goods, increased footfall at stores, and online sales. However, investors should evaluate the companies carefully before investing in the stock market.

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