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Macy's (M) to Post Q1 Earnings: Polaris Strategy a Tailwind
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Macy's, Inc. (M - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2022 results on May 26, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $5,345 million, indicating growth of 13.6% from the prior-year reported figure.
The bottom line of this New York-based company is anticipated to improve year over year. The Zacks Consensus Estimate for first-quarter earnings per share has increased 3.8% to 82 cents over the past 30 days. The figure suggests a sharp increase from 39 cents reported in the year-ago period.
Macy's has a trailing four-quarter earnings surprise of 238.9%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 22.5%.
Key Factors to Note
Macy’s first-quarter performance is likely to have benefited from successful execution of Polaris strategy, robust omni-channel capabilities, curated merchandise assortment and accelerated rate of customer acquisition. Industry experts cited solid job market, incremental wages and return to active social engagements as primary reasons behind strong consumer engagement. As a result, the company is likely to have witnessed positive sales trend across all three brands namely, Macy’s, Bloomingdale’s and Bluemercury.
We note that Macy's digital business remain one of the major revenue drivers. The company has been undertaking a host of initiatives to provide customers a seamless shopping experience. Its tie-up with DoorDash for expediting delivery service, redesigned mobile app and addition of payment options such as Apple Pay, Klarna Express Checkout, PayPal and Venmo are worth mentioning.
On its last earnings call, management guided first-quarter net sales between $5,270 million and $5,370 million. This indicates an improvement from net sales of $4,706 million reported in the year-ago period. It projected adjusted earnings to be 77-85 cents a share. This suggests an increase from 39 cents reported in first-quarter fiscal 2021.
While the abovementioned factors raise optimism about the outcome, margins still remain an area to watch. Inflationary pressures, supply chain bottlenecks, any promotional activity in the industry, and tight labor market might have weighed on the company’s margins in the quarter to be reported.
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 chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Kroger (KR - Free Report) currently has an Earnings ESP of +2.95% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.27 suggests growth of 6.7% from the year-ago quarter’s reported figure.
Kroger’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $43.22 billion, indicating an increase of 4.7% from the year-ago quarter. KR has a trailing four-quarter earnings surprise of 22.1%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +7.07% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.49 suggests an increase of 33% from the year-ago reported number.
Casey's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.44 billion, which suggests an increase of 44.7% from the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 21.6%, on average.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +5.16% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.44 suggests an increase of 8.3% from the year-ago reported number.
Ulta Beauty’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.13 billion, which suggests an increase of 10% from the prior-year quarter. ULTA has a trailing four-quarter earnings surprise of 67.8%, on average.
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Macy's (M) to Post Q1 Earnings: Polaris Strategy a Tailwind
Macy's, Inc. (M - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2022 results on May 26, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $5,345 million, indicating growth of 13.6% from the prior-year reported figure.
The bottom line of this New York-based company is anticipated to improve year over year. The Zacks Consensus Estimate for first-quarter earnings per share has increased 3.8% to 82 cents over the past 30 days. The figure suggests a sharp increase from 39 cents reported in the year-ago period.
Macy's has a trailing four-quarter earnings surprise of 238.9%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 22.5%.
Key Factors to Note
Macy’s first-quarter performance is likely to have benefited from successful execution of Polaris strategy, robust omni-channel capabilities, curated merchandise assortment and accelerated rate of customer acquisition. Industry experts cited solid job market, incremental wages and return to active social engagements as primary reasons behind strong consumer engagement. As a result, the company is likely to have witnessed positive sales trend across all three brands namely, Macy’s, Bloomingdale’s and Bluemercury.
We note that Macy's digital business remain one of the major revenue drivers. The company has been undertaking a host of initiatives to provide customers a seamless shopping experience. Its tie-up with DoorDash for expediting delivery service, redesigned mobile app and addition of payment options such as Apple Pay, Klarna Express Checkout, PayPal and Venmo are worth mentioning.
On its last earnings call, management guided first-quarter net sales between $5,270 million and $5,370 million. This indicates an improvement from net sales of $4,706 million reported in the year-ago period. It projected adjusted earnings to be 77-85 cents a share. This suggests an increase from 39 cents reported in first-quarter fiscal 2021.
While the abovementioned factors raise optimism about the outcome, margins still remain an area to watch. Inflationary pressures, supply chain bottlenecks, any promotional activity in the industry, and tight labor market might have weighed on the company’s margins in the quarter to be reported.
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 chances 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 an Earnings ESP of +3.12% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 More Stocks With Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Kroger (KR - Free Report) currently has an Earnings ESP of +2.95% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.27 suggests growth of 6.7% from the year-ago quarter’s reported figure.
Kroger’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $43.22 billion, indicating an increase of 4.7% from the year-ago quarter. KR has a trailing four-quarter earnings surprise of 22.1%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +7.07% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.49 suggests an increase of 33% from the year-ago reported number.
Casey's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.44 billion, which suggests an increase of 44.7% from the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 21.6%, on average.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +5.16% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.44 suggests an increase of 8.3% from the year-ago reported number.
Ulta Beauty’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.13 billion, which suggests an increase of 10% from the prior-year quarter. ULTA has a trailing four-quarter earnings surprise of 67.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.