Earnings Preview: Macy's sees Q4 EPS $1.94-$1.99 ex-items

Macy's (M) is scheduled to report Q4 before the market open on Tuesday, February 26, with a conference call scheduled for 10:30 am ET. Macy's is a retailer that sell a range of merchandise, including apparel and accessories, cosmetics, home furnishings and other consumer goods... EXPECTATIONS: Analysts are looking for EPS of $1.99 on revenue of $9.3B, according to First Call. The consensus range for EPS is $1.96-$2.05 on revenue of $9.23B-$9.4B... LAST QUARTER: Macy's reported Q3 EPS of 36c against estimates for 30c on revenue of $6.08B against estimates for $6.08B. During the quarter, Macy's cut its Q4 EPS view to $1.91-$1.96 from $1.94-$1.99 and forecast same-store sales up 3%-3.5% for the quarter. The retailer later raised its Q4 EPS view to $1.94-$1.99 ex-items, in-line with guidance given on November 7. Macy's also increased its share repurchase authorization by $1.5B, bringing the remaining authorization outstanding to $1.861B. The company said it would close six stores in early spring, and would book an estimated $2M-$4M of costs in Q4, but confirmed plans for nine new stores. Macy's also continued its legal battle with J.C. Penney (JCP) over their partnerships with Martha Stewart Living Omnimedia (MSO)... STREET RESEARCH: Citigroup recently upgraded Macy's to Buy from Neutral on expectations the company is positioned for accelerating comp growth in 2013. Macquarie downgraded Macy's to Neutral from Outperform based on relative valuation, normalizing EPS growth, and expectations for slowing comps... PRICE ACTION: Over the last three months, Macy's shares are down over 6.5%. Year-to-date, shares are relatively flat.