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Macy's (M) to Post Q3 Earnings: What Awaits the Stock?
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Macy’s, Inc. (M - Free Report) is likely to witness top- and bottom-line growth when it reports third-quarter fiscal 2021 numbers on Nov 18, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5,291 million, which suggests an increase of 32.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has improved by five cents in the past seven days and is currently pegged at 31 cents per share. In the year-ago quarter, the company reported a loss of 19 cents. Macy's bottom line surpassed the Zacks Consensus Estimate by 486.4% in the last reported quarter. The company has a trailing four-quarter earnings surprise of 269.8%, on average.
Key Aspects to Note
Macy’s third-quarter performance is likely to have gained from continued economic recovery, as pandemic-led restrictions ease. Such aspects are likely to have aided the company’s performance across merchandise categories and its three key brand lines — Macy’s, Bloomingdale’s and Bluemercury.
Benefits from the execution of the Polaris growth strategy are likely to have aided the company’s performance during the quarter in review. The strategy is aimed at strengthening customer relationships, expanding assortments and optimizing store portfolio among others. Such measures along with focus on price optimization, inventory management, merchandise planning and boosting private label offerings, are likely to have been tailwinds.
Macy’s is undertaking prudent measures to boost online sales. It has been striving to bolster omni-channel capabilities, such as curbside pickup and same-day delivery as well as enhancing mobile and website features to deliver superior shopping experience. It has also been undertaking measures to boost customer engagement by expanding the loyalty programs.
However, adverse impacts stemming from supply chain disruptions, caused by the pandemic, cannot be ruled out. Such supply chain disruptions have been causing delays and shortages across some of the company’s product categories. Also, elevated delivery expenses are a concern.
Our proven model predicts an earnings beat for Macy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Macy’s has a Zacks Rank #1 and an Earnings ESP of +9.77%.
Here are some other companies you may want to consider as our model shows that they also have the right combination of elements to post an earnings beat:
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank of 1. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings of $2.59 per share suggests an increase of 13.1% from the year-ago quarter’s reported figure
Costco’s top line is also expected to rise year over year. The consensus mark for revenues is pegged at $49.6 billion, indicating an increase of 14.8% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 7.7%, on average
Fastenal Company (FAST - Free Report) currently has an Earnings ESP of +3.59% and a Zacks Rank of 2. The company is expected to register bottom-line growth when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly earnings of 36 cents per share indicates a rise of 5.9% from the year-ago quarter’s figure
Fastenal’s top line is also expected to rise year over year. The consensus mark for revenues is pegged at $1.48 billion, calling for an increase of 9% from the figure reported in the year-ago quarter. FAST has a trailing four-quarter earnings surprise of 2%, on average.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +4.01% and a Zacks Rank of 3. The company is expected to register bottom-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings of 61 cents per share suggests growth of 74.3% from the year-ago period’s reported figure
American Eagle’s top line is also expected to rise year over year. The consensus mark for revenues is pegged at $1.23 billion, indicating an increase of 19.1% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 7.5%, on average.
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Macy's (M) to Post Q3 Earnings: What Awaits the Stock?
Macy’s, Inc. (M - Free Report) is likely to witness top- and bottom-line growth when it reports third-quarter fiscal 2021 numbers on Nov 18, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5,291 million, which suggests an increase of 32.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has improved by five cents in the past seven days and is currently pegged at 31 cents per share. In the year-ago quarter, the company reported a loss of 19 cents. Macy's bottom line surpassed the Zacks Consensus Estimate by 486.4% in the last reported quarter. The company has a trailing four-quarter earnings surprise of 269.8%, on average.
Key Aspects to Note
Macy’s third-quarter performance is likely to have gained from continued economic recovery, as pandemic-led restrictions ease. Such aspects are likely to have aided the company’s performance across merchandise categories and its three key brand lines — Macy’s, Bloomingdale’s and Bluemercury.
Benefits from the execution of the Polaris growth strategy are likely to have aided the company’s performance during the quarter in review. The strategy is aimed at strengthening customer relationships, expanding assortments and optimizing store portfolio among others. Such measures along with focus on price optimization, inventory management, merchandise planning and boosting private label offerings, are likely to have been tailwinds.
Macy’s is undertaking prudent measures to boost online sales. It has been striving to bolster omni-channel capabilities, such as curbside pickup and same-day delivery as well as enhancing mobile and website features to deliver superior shopping experience. It has also been undertaking measures to boost customer engagement by expanding the loyalty programs.
However, adverse impacts stemming from supply chain disruptions, caused by the pandemic, cannot be ruled out. Such supply chain disruptions have been causing delays and shortages across some of the company’s product categories. Also, elevated delivery expenses are a concern.
Macy's, Inc. Price, Consensus and EPS Surprise
Macy's, Inc. price-consensus-eps-surprise-chart | Macy's, Inc. Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Macy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Macy’s has a Zacks Rank #1 and an Earnings ESP of +9.77%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With Favorable Combination
Here are some other companies you may want to consider as our model shows that they also have the right combination of elements to post an earnings beat:
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank of 1. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings of $2.59 per share suggests an increase of 13.1% from the year-ago quarter’s reported figure
Costco’s top line is also expected to rise year over year. The consensus mark for revenues is pegged at $49.6 billion, indicating an increase of 14.8% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 7.7%, on average
Fastenal Company (FAST - Free Report) currently has an Earnings ESP of +3.59% and a Zacks Rank of 2. The company is expected to register bottom-line growth when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly earnings of 36 cents per share indicates a rise of 5.9% from the year-ago quarter’s figure
Fastenal’s top line is also expected to rise year over year. The consensus mark for revenues is pegged at $1.48 billion, calling for an increase of 9% from the figure reported in the year-ago quarter. FAST has a trailing four-quarter earnings surprise of 2%, on average.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +4.01% and a Zacks Rank of 3. The company is expected to register bottom-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings of 61 cents per share suggests growth of 74.3% from the year-ago period’s reported figure
American Eagle’s top line is also expected to rise year over year. The consensus mark for revenues is pegged at $1.23 billion, indicating an increase of 19.1% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 7.5%, on average.