Macy’s Earnings: Here’s Why Shares are Up 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 up 1.92%.

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Macy’s, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 27.91% to $0.55 in the quarter versus EPS of $0.43 in the year-earlier quarter.

Revenue: Rose 3.97% to $6.39 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Macy’s, Inc. reported adjusted EPS income of $0.55 per share. By that measure, the company beat the mean analyst estimate of $0.53. It missed the average revenue estimate of $6.39 billion.

Quoting Management: “The first quarter demonstrated our ability to continue to build on our success over the past few years in growing sales and earnings. Based on the effectiveness of strategies we have in place, we are confident that momentum will continue going forward, which is reflected in the actions we are announcing today to increase returns to our shareholders through an increased dividend and share repurchases,” said Terry J. Lundgren, Macy’s, Inc. chairman, president and chief executive officer.

Key Stats (on next page)…

Revenue decreased 31.69% from $9.35 billion in the previous quarter. EPS decreased 73.17% from $2.05 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.81 to a profit $0.78. For the current year, the average estimate has moved up from a profit of $3.81 to a profit of $3.92 over the last ninety days.

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