Earnings Preview For Macy's

Macy's M is set to give its latest quarterly earnings report on Wednesday, 2024-12-11. Here's what investors need to know before the announcement.

Analysts estimate that Macy's will report an earnings per share (EPS) of $-0.01.

The announcement from Macy's is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.23, leading to a 1.81% drop in the share price the following trading session.

Here's a look at Macy's's past performance and the resulting price change:

Tracking Macy's's Stock Performance

Shares of Macy's were trading at $16.72 as of December 09. Over the last 52-week period, shares are down 13.7%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analyst Insights on Macy's

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Macy's.

The consensus rating for Macy's is Neutral, derived from 1 analyst ratings. An average one-year price target of $17.0 implies a potential 1.67% upside.

Analyzing Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Nordstrom, Ollie's Bargain Outlet and Dillard's, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Nordstrom, with an average 1-year price target of $21.92, suggesting a potential 31.1% upside.
• The consensus outlook from analysts is an Buy trajectory for Ollie's Bargain Outlet, with an average 1-year price target of $106.6, indicating a potential 537.56% upside.
• The consensus outlook from analysts is an Neutral trajectory for Dillard's, with an average 1-year price target of $324.0, indicating a potential 1837.8% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary presents essential metrics for Nordstrom, Ollie's Bargain Outlet and Dillard's, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Macy's ranks at the bottom for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

All You Need to Know About Macy's

Founded in 1858 and based in New York City, Macy's operates about 500 stores under the Macy's nameplate, nearly 60 stores under the Bloomingdale's (full-price and outlet) and Bloomie's nameplates, and 157 freestanding Bluemercury specialty beauty stores. Macy's also operates e-commerce sites and licenses Bloomingdale's stores in the United Arab Emirates and Kuwait. Women's apparel, accessories, shoes, cosmetics, and fragrances composed 62% of Macy's 2023 sales.

A Deep Dive into Macy's's Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Negative Revenue Trend: Examining Macy's's financials over 3 months reveals challenges. As of 31 July, 2024, the company experienced a decline of approximately -3.48% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Macy's's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 2.94%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Macy's's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.53%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Macy's's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.93%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Macy's's debt-to-equity ratio is below the industry average. With a ratio of 1.4, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Macy's visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.