The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Macy's met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margin contracted, operating margin grew, and net margin increased.
Macy's reported revenue of $8.72 billion. The 12 analysts polled by S&P Capital IQ hoped for revenue of $8.70 billion on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $8.27 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.70. The 13 earnings estimates compiled by S&P Capital IQ forecast $1.65 per share on the same basis. GAAP EPS of $1.74 for Q4 were 12% higher than the prior-year quarter's $1.55 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 41.0%, 30 basis points worse than the prior-year quarter. Operating margin was 14.4%, 30 basis points better than the prior-year quarter. Net margin was 8.5%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.09 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $27.43 billion. The average EPS estimate is $3.27.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 486 members out of 780 rating the stock outperform, and 294 members rating it underperform. Among 213 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 155 give Macy's a green thumbs-up, and 58 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 $38.12.
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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 of Motley 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.