What to Watch For in Macy’s Q3 Report

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Macy’s Inc. (NYSE: M) is scheduled to release its fiscal third-quarter financial results before the markets open on Wednesday. Thomson Reuters consensus estimates are calling for $0.14 in earnings per share (EPS) and $5.4 billion in revenue. In the same period of last year, the retailer said it had $0.23 in EPS and $5.28 billion in revenue.

Recently, Macy’s announced that it would be partnering with Facebook in an effort to expand its e-commerce customer experience. The retail chain also will add other new features to its enterprise, including virtual reality and augmented reality.

As for the Facebook partnership, the social media site will bring in nearly 150 e-commerce brands to The Market @ Macy’s across nine stores this holiday season. The Market @ Macy’s helps both emerging and established brands reach new audiences in a physical space with turn-key entry into some of Macy’s most highly trafficked stores.

Each Market brings a rotating selection of unique offerings in apparel, accessories, beauty, entertainment, experiences, decorative home, stationery, technology and gifts. Mobile and platforms like Facebook have opened the door for emerging brands to connect with shoppers digitally, and now The Market @ Macy’s partnership with Facebook will provide participating small businesses and e-commerce brands the unique experience of a Macy’s store environment during the holidays.

Excluding Tuesday’s move, Macy’s has outperformed the broad markets, with the stock up over 85% in the past 52 weeks. In just 2018 alone, the stock was up only 47%.

A few analysts weighed in on Macy’s ahead of the report:

  • Goldman Sachs has a Sell rating with a $33 price target.
  • Cowen has a Market Perform rating and a $37 price target.
  • Deutsche Bank has a Hold rating with a $35 price target.
  • Morgan Stanley has an Underweight rating with a $27 target.
  • Standpoint Research has a Hold rating.

Shares of Macy’s were last seen down 2% at $36.26, in a 52-week range of $19.09 to $41.99. The consensus analyst price target is $36.07.