Macy’s First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Macy’s, Inc. (NYSE:M) will unveil its latest earnings on Wednesday, May 9, 2012. Macy’s is a retailer that sells apparel and accessories, cosmetics, home furnishings and other consumer goods.

Macy’s, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 39 cents per share, a rise of 30% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 34 cents. Between one and three months ago, the average estimate moved up. It has risen from 37 cents during the last month. Analysts are projecting profit to rise by 16.7% compared to last year’s $3.36.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting profit of $1.70 per share against a mean estimate of net income of $1.65 per share.

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Wall St. Revenue Expectations: On average, analysts predict $6.13 billion in revenue this quarter, a rise of 4.1% from the year-ago quarter. Analysts are forecasting total revenue of $27.7 billion for the year, a rise of 4.9% from last year’s revenue of $26.4 billion.

Analyst Ratings: Analysts are bullish on this stock, with 10 analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 11.7% to $745 million ($1.74 a share) from $667 million ($1.56 a share) the year earlier, exceeding analyst expectations. Revenue rose 5.5% to $8.72 billion from $8.27 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 63.9% in the second quarter of the last fiscal year and 1290% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 5.7% in the first quarter of the last fiscal year, 7.3% in the second quarter of the last fiscal year and 4.1% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between February 7, 2012 and May 3, 2012, the stock price rose $5.86 (16.4%), from $35.69 to $41.55. The stock price saw one of its best stretches over the last year between February 23, 2012 and March 1, 2012, when shares rose for six straight days, increasing 5% (+$1.85) over that span. It saw one of its worst periods between July 22, 2011 and July 29, 2011 when shares fell for six straight days, dropping 5.3% (-$1.61) over that span.

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

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