Macy's Upcoming Earnings Report: A Detailed Investor Insight
Macy's Quarterly Earnings Overview
Macy's (M) is set to announce its quarterly earnings, and investors are keeping a close eye on what this could mean for their portfolios. The expectations are high as analysts have forecasted an earnings per share (EPS) of $0.19. There’s a palpable excitement in the market as traders speculate on whether Macy's might exceed these estimates.
Previous Earnings Performance
A Look Back at Last Quarter
In its last earnings report, Macy's managed to beat the EPS estimate by a narrow margin, reporting $0.16. However, this good news was met with a slight drop in share price of 0.5% in the next trading session, a reminder of the unpredictable nature of the stock market.
Historical Performance Summary
Let's take a peek at how Macy's performed in recent quarters:
- Q1 2025: Estimated EPS of $0.15, actual EPS $0.16, price change -1.0%
- Q4 2024: EPS estimate of $1.53, actual $1.80, price change +6.0%
- Q3 2024: EPS estimate of $0.03, actual $0.04, price change -3.0%
- Q2 2024: EPS estimate of $0.30, actual $0.53, price change -2.0%
Market Performance Insights
As of the first of September, Macy's shares were trading at $13.23. Over the past 52 weeks, the stock has declined by 13.5%. Such trends could indicate trepidation among long-term shareholders as they approach the upcoming earnings release.
Analyst Sentiment
Investor Guidance
Understanding how analysts view Macy's is crucial for potential investors. Currently, there are mixed feelings, with two analyst ratings pointing towards a 'Neutral' consensus. The average one-year price target for Macy's stands at $15.00, suggesting a potential upside of 13.38%.
Comparative Analysis with Peers
When comparing Macy's with its competitors, we notice some interesting trends:
- Savers Value Village: Neutral rating, one-year target $12.67, suggesting a potential downside of 4.23%.
- Kohl's: Neutral rating, target $11.14, suggesting a downside of 15.8%.
- Global E Online: Sell rating, target $32.00, indicating a potential upside of 141.87%.
Financial Metrics and Analysis
Understanding Macy's Financial Landscape
Macy's financial standing reveals some areas of concern. The company has a market capitalization that falls below the industry average, which may signal limited growth potential. Recently, Macy's faced a revenue setback, reflecting a decline of -4.14% over three months, in stark contrast to better-performing competitors. This decline stirs worries about future profitability.
Challenges in Profitability
Considering its net margin of 0.79%, Macy's is struggling with profitability. Furthermore, the company’s return on equity (ROE) of 0.84% suggests inefficiencies in using invested capital. This could mean that Macy's has to explore ways to improve its financial performance and attract more investors.
The Future of Macy's: What Lies Ahead?
Debt Management Concerns
Currently, Macy's holds a debt-to-equity ratio of 1.27, indicating it may grapple with substantial debt obligations. Successfully managing this debt will be vital for sustaining operations and appealing to investors.
What to Watch in the Upcoming Earnings Release
As the earnings announcement approaches, investors should keep an eye on key indicators such as guidance for future quarters. Strong guidance may lift investor sentiment and bolster stock performance.
Frequently Asked Questions
What is Macy's expected EPS for this quarter?
The anticipated earnings per share (EPS) for Macy’s is $0.19.
How did Macy's perform in the last earnings report?
Macy's beat the EPS estimate by reporting $0.16, although the stock price fell by 0.5% afterward.
What is the current stock price of Macy's?
Macy's stock was trading at $13.23 as of September 1.
What is the analyst consensus for Macy's?
The current consensus rating for Macy's is Neutral with an average one-year price target of $15.00.
How does Macy's compare to its competitors?
Macy's lags behind in revenue growth but is positioned similarly in terms of market consensus compared to Savers Value Village and Kohl's.
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