What to Expect When Macy’s Reports Earnings

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Macy’s Inc. (NYSE: M) is set to report its fiscal first-quarter financial results before the markets open on Wednesday. Thomson Reuters has consensus estimates of $0.37 in earnings per share (EPS) on $5.95 billion in revenue. The same period from last year had $0.56 in EPS on $6.23 billion in revenue.

Management is encouraged by the way the business responded going into 2016, and believes that it is well positioned to stabilize sales levels this year as Macy’s lays the foundation for enhanced shareholder value and sustained, long-term profitable growth. Given its determination to rise above a disappointing 2015 performance, the company believes that this setback last year is a setup for a comeback.

In the fourth quarter, the company announced licensed department arrangements with companies including LensCrafters, Men’s Wearhouse and Best Buy to add new categories to the Macy’s store assortment. At the same time, Macy’s also completed the acquisition of Bluemercury, which added capabilities to its signature beauty business.

A few analysts weighed in on Macy’s prior to the release of the earnings report:

  • RBC Capital initiated coverage with a Sector Perform rating and a $42 price target.
  • Jefferies initiated coverage with a Hold rating and a $45 price target.
  • Telsey Advisory has a Market Perform rating with a $44 price target.
  • Stifel had a Hold rating.
  • Barclays has an Underweight rating with a $36 price target.

So far in 2016, Macy’s has outperformed the broad markets, with the stock up nearly 10%. Over the past 52 weeks, this is not the case, as the stock is down about 40% in this time.

Shares of Macy’s were trading down 1.6% at $37.13 on Tuesday, with a consensus analyst price target of $44.43 and a 52-week trading range of $34.05 to $73.61.