S&P 500 (NYSE:SPY) component Macy’s (NYSE:M) will unveil its latest earnings on Wednesday, August 8, 2012. Macy’s is a retailer that sells apparel and accessories, cosmetics, home furnishings and other consumer goods.
Macy’s Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 64 cents per share, a rise of 16.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 66 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 65 cents during the last month. Analysts are projecting profit to rise by 16% versus last year to $3.34.
Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at net income of 43 cents a share versus the estimate of profit of 40 cents a share. It marked the fourth straight quarter of beating estimates.
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A Look Back: In the first quarter, profit rose 38.2% to $181 million (43 cents a share) from $131 million (30 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.3% to $6.14 billion from $5.89 billion.
Stock Price Performance: Between May 8, 2012 and August 2, 2012, the stock price fell $3.11 (-7.9%), from $39.51 to $36.40. The stock price saw one of its best stretches over the last year between July 12, 2012 and July 20, 2012, when shares rose for seven straight days, increasing 8.4% (+$2.77) over that span. It saw one of its worst periods between May 3, 2012 and May 10, 2012 when shares fell for six straight days, dropping 9% (-$3.72) over that span.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.49 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 1290% in the third quarter of the last fiscal year and 11.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.3% in the second quarter of the last fiscal year, 4.1% in the third quarter of the last fiscal year and 5.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Wall St. Revenue Expectations: Analysts are projecting a rise of 2.7% in revenue from the year-earlier quarter to $6.1 billion.
Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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