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Macy's (M) Stock Climbs 4.3% Ahead of Q2 Earnings: What To Watch
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Shares of Macy's (M - Free Report) surged 4.34% during regular trading hours Tuesday to close at a new 52-week high. The department store giant’s major move might signal that investors are confident the company will report strong Q2 financial results before the market opens Wednesday. Let’s see what they should really expect.
Macy’s has seen its stock price skyrocket over 100% during the last year, which outpaces Amazon (AMZN - Free Report) . The company seems to be riding a wave of positive momentum after it hit a roughly seven-year low last November. The historic department store firm did see its first-quarter revenues jump 3.6% to reach $5.54 billion.
More impressively, the department store giant’s comps popped 3.9% on an owned-store basis and 4.2% for owned plus licensed stores. Meanwhile, its online and digital sales also surged last quarter. Plus, the Cincinnati-based company’s adjusted quarterly earnings soared from $0.26 per share in the year-ago period to $0.48 per share.
The firm’s Q1 was strong and the company is in the midst of a stellar run. But, Macy’s stock price could plummet if the company’s Q2 results fail to impress investors.
Macy’s is expected to see its second-quarter revenues climb by 0.70% to hit $5.59 billion, based on our current Zacks Consensus Estimate. At the bottom of the income statement, the company’s earnings are projected to by pop just over 2% to touch $0.49 per share.
Still, we need to see how likely it is that Macy’s can outperform its earnings estimate. Luckily we can turn to our exclusive Earnings ESP figure to do so.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Macy’s Most Accurate Estimate—the representation of the most recent analyst sentiment—is calling for earnings of $0.53 per share, which is four cents better than our current consensus estimate. This figure helps M sport an Earnings ESP of 6.28% and a Zacks Rank #2 (Buy)—supported by some recent positive earnings estimate revisions. Therefore, there is a good chance that Macy’s could top our estimate Wednesday.
Macy’s has also come in above our quarterly earnings estimates in six out of the last eight quarters. The company is scheduled to report its Q2 financial results before the market opens on Wednesday, August 15.
Fellow department stores J. C. Penney and Nordstrom (JWN - Free Report) report their quarterly financial results on Thursday, along with Walmart (WMT - Free Report) .
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Macy's (M) Stock Climbs 4.3% Ahead of Q2 Earnings: What To Watch
Shares of Macy's (M - Free Report) surged 4.34% during regular trading hours Tuesday to close at a new 52-week high. The department store giant’s major move might signal that investors are confident the company will report strong Q2 financial results before the market opens Wednesday. Let’s see what they should really expect.
Macy’s has seen its stock price skyrocket over 100% during the last year, which outpaces Amazon (AMZN - Free Report) . The company seems to be riding a wave of positive momentum after it hit a roughly seven-year low last November. The historic department store firm did see its first-quarter revenues jump 3.6% to reach $5.54 billion.
More impressively, the department store giant’s comps popped 3.9% on an owned-store basis and 4.2% for owned plus licensed stores. Meanwhile, its online and digital sales also surged last quarter. Plus, the Cincinnati-based company’s adjusted quarterly earnings soared from $0.26 per share in the year-ago period to $0.48 per share.
The firm’s Q1 was strong and the company is in the midst of a stellar run. But, Macy’s stock price could plummet if the company’s Q2 results fail to impress investors.
Macy’s is expected to see its second-quarter revenues climb by 0.70% to hit $5.59 billion, based on our current Zacks Consensus Estimate. At the bottom of the income statement, the company’s earnings are projected to by pop just over 2% to touch $0.49 per share.
Still, we need to see how likely it is that Macy’s can outperform its earnings estimate. Luckily we can turn to our exclusive Earnings ESP figure to do so.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Macy’s Most Accurate Estimate—the representation of the most recent analyst sentiment—is calling for earnings of $0.53 per share, which is four cents better than our current consensus estimate. This figure helps M sport an Earnings ESP of 6.28% and a Zacks Rank #2 (Buy)—supported by some recent positive earnings estimate revisions. Therefore, there is a good chance that Macy’s could top our estimate Wednesday.
Macy’s has also come in above our quarterly earnings estimates in six out of the last eight quarters. The company is scheduled to report its Q2 financial results before the market opens on Wednesday, August 15.
Fellow department stores J. C. Penney and Nordstrom (JWN - Free Report) report their quarterly financial results on Thursday, along with Walmart (WMT - Free Report) .
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>