Macy’s Earnings: Surprises Analyst Consensus on Profit Rise

S&P 500 (NYSE:SPY) component Macy’s Inc. (NYSE:M) reported net income above Wall Street’s expectations for the third quarter. Macy’s is a retailer that sells apparel and accessories, cosmetics, home furnishings and other consumer goods.

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Macy’s Inc. Earnings Cheat Sheet

Results: Net income for the retail-regional department stores rose to $145 million (36 cents per share) vs. $139 million (32 cents per share) in the same quarter a year earlier. This marks a rise of 4.3% from the year-earlier quarter.

Revenue: Rose 3.8% to $6.08 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Macy’s Inc. beat the mean analyst estimate of 29 cents per share. Analysts were expecting revenue of $6.13 billion.

Quoting Management: “We were pleased to deliver sales and earnings growth for the 11th consecutive quarter,” said Terry J. Lundgren, chairman, president and chief executive officer of Macy’s, Inc. “Our success in the third quarter reflected a combination of factors, as has been the case over the past several years. We continue to implement our My Macy’s localization, omnichannel integration and enhanced customer engagement strategies with increasing precision, passion and success. This has helped us to deepen our relationship with customers and capture market share.”

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 15.8% and in the first quarter, the figure rose 38.2%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the second quarter, by 3 cents in the first quarter, and by 5 cents in the fourth quarter of the last fiscal year.

Revenue has increased for four quarters in a row. Revenue increased 3% to $6.12 billion in the second quarter. The figure rose 4.3% in the first quarter from the year earlier and climbed 5.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.88 a share to $2.04 over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $3.36 per to share to $3.39.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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