The 10-second takeaway
For the quarter ended May 4 (Q1), Macy's met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Gross margins were steady, operating margins increased, net margins expanded.
Macy's booked revenue of $6.39 billion. The 13 analysts polled by S&P Capital IQ wanted to see a top line of $6.39 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.55. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.53 per share. GAAP EPS of $0.55 for Q1 were 28% higher than the prior-year quarter's $0.43 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%, much about the same as the prior-year quarter. Operating margin was 6.8%, 40 basis points better than the prior-year quarter. Net margin was 3.4%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $6.27 billion. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $28.36 billion. The average EPS estimate is $3.92.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 526 members out of 822 rating the stock outperform, and 296 members rating it underperform. Among 218 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 178 give Macy's a green thumbs-up, and 40 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 $47.56.
Is Macy's the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Macy's to My Watchlist.