Macy's Beats Analyst Estimates on EPS

Updated

Macy's (NYS: M) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 28 (Q1), Macy's met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.


Gross margins contracted, operating margins increased, net margins increased.

Revenue details
Macy's reported revenue of $6.14 billion. The six analysts polled by S&P Capital IQ anticipated revenue of $6.12 billion on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $5.89 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.43. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.43 for Q1 were 43% higher than the prior-year quarter's $0.30 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.8%, 30 basis points worse than the prior-year quarter. Operating margin was 6.4%, 80 basis points better than the prior-year quarter. Net margin was 2.9%, 70 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $6.12 billion. On the bottom line, the average EPS estimate is $0.65.

Next year's average estimate for revenue is $27.67 billion. The average EPS estimate is $3.34.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 497 members out of 793 rating the stock outperform, and 296 members rating it underperform. Among 206 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give Macy's a green thumbs-up, and 55 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Macy's is outperform, with an average price target of $44.17.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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