Macy’s Earnings: Here’s Why Investors are Selling Shares Now

Macy’s, Inc. (NYSE:M) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.61%.

Macy’s, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.39% to $0.82 in the quarter versus EPS of $0.67 in the year-earlier quarter.

Revenue: Decreased 0.85% to $6.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Macy’s, Inc. reported adjusted EPS income of $0.82 per share. By that measure, the company beat the mean analyst estimate of $0.78. It missed the average revenue estimate of $6.26 billion.

Quoting Management: “We had planned our second quarter sales with a lower increase than the first quarter because of a shift in a major promotional event. Even so, second quarter sales performance was softer than anticipated, and we are disappointed with the results. Our performance in the period, in part, reflects consumers’ continuing uncertainty about spending on discretionary items in the current economic environment. After a cool spring, we have taken appropriate markdowns and customers are responding favorably. Also on the positive side, we have seen a strengthening of the sales trend in key elements of women’s ready-to-wear, a category which has lagged over the past couple of years. Bloomingdale’s sales rebounded in the second quarter, and we are encouraged by our recent momentum,” said Terry J. Lundgren, Macy’s, Inc. chairman, president and chief executive officer.

Key Stats (on next page)…

Revenue decreased 5.03% from $6.39 billion in the previous quarter. EPS increased 49.09% from $0.55 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.44 and has not changed. For the current year, the average estimate is a profit of $3.94, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , , , , ,  

More from The Cheat Sheet