The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Macy's met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margins grew, operating margins increased, net margins were steady.
Macy's logged revenue of $6.08 billion. The 14 analysts polled by S&P Capital IQ hoped for net sales of $6.05 billion on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $5.85 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.36. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. GAAP EPS of $0.36 for Q3 were 13% higher than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.6%, 20 basis points better than the prior-year quarter. Operating margin was 5.3%, 30 basis points better than the prior-year quarter. Net margin was 2.4%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $9.40 billion. On the bottom line, the average EPS estimate is $2.04.
Next year's average estimate for revenue is $27.72 billion. The average EPS estimate is $3.40.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 515 members out of 809 rating the stock outperform, and 294 members rating it underperform. Among 218 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 166 give Macy's a green thumbs-up, and 52 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 $44.12.
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