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Macy's (M) to Report Q4 Earnings: Key Factors to Consider
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Macy's, Inc. (M - Free Report) is likely to register both top- and bottom-line growth when it reports fourth-quarter fiscal 2021 results on Feb 22, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $8,442 million, suggesting an increase of 24.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has been stable at $1.97 per share in the past 30 days. The consensus mark indicates a sharp rise from 80 cents earned in the year-earlier quarter. Macy's bottom line surpassed the Zacks Consensus Estimate by 251.4% in the last reported quarter. M has a trailing four-quarter earnings surprise of 313.5%, on average.
For fiscal 2021, the Zacks Consensus Estimate for revenues is pegged at $24.2 billion, suggesting an increase of 39.6% from the prior-year’s reported figure. The Zacks Consensus Estimate for earnings has been stable in the past 30 days at $4.87 per share. Macy's had incurred a loss of $2.21 in the last fiscal year.
Factors to Note
Macy’s quarterly performance is likely to have gained from the execution of the Polaris Strategy, strong omni-channel capabilities and an improved consumer spending across key brands, namely Macy’s, Bloomingdale’s and Bluemercury. The Polaris Strategy aims to strengthen customer relationships, expand assortments and optimize the store portfolio among others.
Macy’s is also taking measures to fuel online sales. Management has been striving to bolster omni-channel capabilities for a while, such as curbside pickup and same-day delivery as well as enhancing mobile and website features to deliver a superior shopping experience. Aforesaid strengths coupled with focus on inventory management, merchandise planning and enhancement of private label offerings are likely to boost the quarterly results.
On its last earnings call, management had anticipated fourth-quarter comparable sales on an owned-plus-licensed basis to increase 2-4% from the fourth-quarter fiscal 2019 levels. For fiscal 2021, management had projected net sales in the bracket of $24.12-$24.28 billion, implying an increase of 39-40% from the fiscal 2020 reading. M expected gross margin to rise by up to 950 basis points from the fiscal 2020 actuals. Macy’s envisioned adjusted earnings of $4.57-$4.76 per share for the current fiscal year, while adjusted EBITDA as a rate of sales is expected to be greater than 12.5%.
However, adverse impacts of pandemic-caused supply-chain disruptions cannot be ruled out. Also, elevated delivery and SG&A expenses are a concern. Management had earlier forecast the fourth-quarter SG&A expense rate to improve nearly 75 basis points from the fourth-quarter 2019 level. It expected fourth-quarter gross margin rate to be 100-150 basis points lower than the fourth-quarter 2019 level.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Macy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Macy’s currently has a Zacks Rank #2 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Gildan Activewear (GIL - Free Report) currently has an Earnings ESP of +9.57% and a Zacks Rank of 2. GIL is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 58 cents suggests an increase of 29% from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gildan Activewear’s top line is expected to increase from the year-earlier quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $731 million, suggesting an increase of 5.9% from the prior-year quarter’s tally. GIL has a trailing four-quarter earnings surprise of 85%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +0.09% and a Zacks Rank #3. FIVE is likely to register a bottom-line improvement when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.48 suggests an increase of 12.7% from the year-ago quarter’s reported figure.
Five Below's top line is expected to rise from the prior-year period’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, which indicates an improvement of 17.1% from the figure reported in the prior-year quarter. FIVE has a trailing four-quarter earnings surprise of 22.4%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.27% and a Zacks Rank of 3. COST is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.67 suggests an increase of 24.8% from the year-ago quarter’s reported number.
Costco’s top line is expected to increase from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.1 billion, suggesting growth of 14% from the prior-year quarter’s actuals. COST has a trailing four-quarter earnings surprise of 8.3%, on average.
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Macy's (M) to Report Q4 Earnings: Key Factors to Consider
Macy's, Inc. (M - Free Report) is likely to register both top- and bottom-line growth when it reports fourth-quarter fiscal 2021 results on Feb 22, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $8,442 million, suggesting an increase of 24.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has been stable at $1.97 per share in the past 30 days. The consensus mark indicates a sharp rise from 80 cents earned in the year-earlier quarter. Macy's bottom line surpassed the Zacks Consensus Estimate by 251.4% in the last reported quarter. M has a trailing four-quarter earnings surprise of 313.5%, on average.
For fiscal 2021, the Zacks Consensus Estimate for revenues is pegged at $24.2 billion, suggesting an increase of 39.6% from the prior-year’s reported figure. The Zacks Consensus Estimate for earnings has been stable in the past 30 days at $4.87 per share. Macy's had incurred a loss of $2.21 in the last fiscal year.
Factors to Note
Macy’s quarterly performance is likely to have gained from the execution of the Polaris Strategy, strong omni-channel capabilities and an improved consumer spending across key brands, namely Macy’s, Bloomingdale’s and Bluemercury. The Polaris Strategy aims to strengthen customer relationships, expand assortments and optimize the store portfolio among others.
Macy’s is also taking measures to fuel online sales. Management has been striving to bolster omni-channel capabilities for a while, such as curbside pickup and same-day delivery as well as enhancing mobile and website features to deliver a superior shopping experience. Aforesaid strengths coupled with focus on inventory management, merchandise planning and enhancement of private label offerings are likely to boost the quarterly results.
On its last earnings call, management had anticipated fourth-quarter comparable sales on an owned-plus-licensed basis to increase 2-4% from the fourth-quarter fiscal 2019 levels. For fiscal 2021, management had projected net sales in the bracket of $24.12-$24.28 billion, implying an increase of 39-40% from the fiscal 2020 reading. M expected gross margin to rise by up to 950 basis points from the fiscal 2020 actuals. Macy’s envisioned adjusted earnings of $4.57-$4.76 per share for the current fiscal year, while adjusted EBITDA as a rate of sales is expected to be greater than 12.5%.
However, adverse impacts of pandemic-caused supply-chain disruptions cannot be ruled out. Also, elevated delivery and SG&A expenses are a concern. Management had earlier forecast the fourth-quarter SG&A expense rate to improve nearly 75 basis points from the fourth-quarter 2019 level. It expected fourth-quarter gross margin rate to be 100-150 basis points lower than the fourth-quarter 2019 level.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Macy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Macy's, Inc. Price and EPS Surprise
Macy's, Inc. price-eps-surprise | Macy's, Inc. Quote
Macy’s currently has a Zacks Rank #2 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Gildan Activewear (GIL - Free Report) currently has an Earnings ESP of +9.57% and a Zacks Rank of 2. GIL is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 58 cents suggests an increase of 29% from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gildan Activewear’s top line is expected to increase from the year-earlier quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $731 million, suggesting an increase of 5.9% from the prior-year quarter’s tally. GIL has a trailing four-quarter earnings surprise of 85%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +0.09% and a Zacks Rank #3. FIVE is likely to register a bottom-line improvement when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.48 suggests an increase of 12.7% from the year-ago quarter’s reported figure.
Five Below's top line is expected to rise from the prior-year period’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, which indicates an improvement of 17.1% from the figure reported in the prior-year quarter. FIVE has a trailing four-quarter earnings surprise of 22.4%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.27% and a Zacks Rank of 3. COST is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.67 suggests an increase of 24.8% from the year-ago quarter’s reported number.
Costco’s top line is expected to increase from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.1 billion, suggesting growth of 14% from the prior-year quarter’s actuals. COST has a trailing four-quarter earnings surprise of 8.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.