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Macy's (M) to Announce Q2 Earnings: What's in the Cards?
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Macy's, Inc. (M - Free Report) is likely to register both top and bottom-line declines from the respective year-ago fiscal quarter’s reported numbers in its second-quarter fiscal 2023 results on Aug 22, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5,057 million, suggesting a 9.7% dip from the prior-year quarter’s reported figure.
The consensus estimate for quarterly earnings has increased a penny to 13 cents per share in the past 30 days. The consensus mark indicates a decline of 87% from $1 a share earned in the year-earlier quarter.
Macy's bottom line surpassed the Zacks Consensus Estimate by 21.7% in the last reported quarter. M has a trailing four-quarter earnings surprise of 58.2%, on average.
Factors to Note
Soft consumer demand due to the inflationary environment and other macroeconomic pressures is likely to have weighed on Macy’s second-quarter fiscal 2023 performance. Markdowns to optimize inventory levels within the overstock categories and the possibility of an elevated promotional environment are expected to have hurt margins and the bottom line. These weaknesses, coupled with any deleveraged selling, general & administrative expenses, are likely to have hit the company’s performance in the quarter under review.
On its last earnings call, management had projected net sales to be $5-$5.1 billion and the gross margin to fall no more than 100 basis points year over year for the fiscal second quarter. It envisioned adjusted earnings per share of 10-15 cents for the same quarter. Management had cited that the second quarter is likely to be the only year-over-year quarterly gross margin rate deterioration. We expect the gross margin to decline 90 basis points in the quarter under review.
Despite the aforementioned headwinds, we expect Macy’s solid execution of the Polaris strategy, robust omnichannel capabilities, curated merchandise assortment and initiatives to provide customers a seamless shopping experience to likely to have provided some cushion to the quarterly performance.
What the Zacks Model Unveils
Our proven model predicts 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, which is precisely the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests an increase of 275% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $1.19 billion, indicating a drop of 0.9% from the figure reported in the year-ago quarter.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +1.21% and a Zacks Rank of 2. FIVE is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $760.2 million, calling for growth of 13.6% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 83 cents suggests a 12.2% increase from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 27.9%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. The company is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a decline of 17.1% from the year-ago quarter.
Casey's top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $3.85 billion, indicating a drop of 13.5% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
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Macy's (M) to Announce Q2 Earnings: What's in the Cards?
Macy's, Inc. (M - Free Report) is likely to register both top and bottom-line declines from the respective year-ago fiscal quarter’s reported numbers in its second-quarter fiscal 2023 results on Aug 22, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5,057 million, suggesting a 9.7% dip from the prior-year quarter’s reported figure.
The consensus estimate for quarterly earnings has increased a penny to 13 cents per share in the past 30 days. The consensus mark indicates a decline of 87% from $1 a share earned in the year-earlier quarter.
Macy's bottom line surpassed the Zacks Consensus Estimate by 21.7% in the last reported quarter. M has a trailing four-quarter earnings surprise of 58.2%, on average.
Factors to Note
Soft consumer demand due to the inflationary environment and other macroeconomic pressures is likely to have weighed on Macy’s second-quarter fiscal 2023 performance. Markdowns to optimize inventory levels within the overstock categories and the possibility of an elevated promotional environment are expected to have hurt margins and the bottom line. These weaknesses, coupled with any deleveraged selling, general & administrative expenses, are likely to have hit the company’s performance in the quarter under review.
On its last earnings call, management had projected net sales to be $5-$5.1 billion and the gross margin to fall no more than 100 basis points year over year for the fiscal second quarter. It envisioned adjusted earnings per share of 10-15 cents for the same quarter. Management had cited that the second quarter is likely to be the only year-over-year quarterly gross margin rate deterioration. We expect the gross margin to decline 90 basis points in the quarter under review.
Despite the aforementioned headwinds, we expect Macy’s solid execution of the Polaris strategy, robust omnichannel capabilities, curated merchandise assortment and initiatives to provide customers a seamless shopping experience to likely to have provided some cushion to the quarterly performance.
What the Zacks Model Unveils
Our proven model predicts 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, which is precisely the case here. You can uncover the best stocks 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 an Earnings ESP of +6.59% and a Zacks Rank of 3.
More Stocks With The Favorable Combination
Here are some other companies, which according to our model, also have the right combination of elements to beat on earnings this season:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +8.52% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests an increase of 275% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $1.19 billion, indicating a drop of 0.9% from the figure reported in the year-ago quarter.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +1.21% and a Zacks Rank of 2. FIVE is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $760.2 million, calling for growth of 13.6% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 83 cents suggests a 12.2% increase from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 27.9%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. The company is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a decline of 17.1% from the year-ago quarter.
Casey's top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $3.85 billion, indicating a drop of 13.5% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.