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.
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.
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 $0.43. 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.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
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.
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.
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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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.