Macy's (M) to Announce Q3 Earnings: What's in the Cards?
Macy's, Inc. M is likely to register both top- and bottom-line declines from the respective year-ago fiscal quarter’s reported numbers in its third-quarter fiscal 2022 results on Nov 17, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5,175 million, suggesting a 4.9% dip from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has been stable at 19 cents per share in the past 30 days. The consensus mark indicates a decline from $1.23 a share earned in the year-earlier quarter. Macy's bottom line surpassed the Zacks Consensus Estimate by 17.7% in the last reported quarter. M has a trailing four-quarter earnings surprise of 80.8%, on average.
We expect revenues to be down 4.6% from the prior-year fiscal quarter’s reading to $5,192.4 million and adjusted earnings to plunge 84.1% to 20 cents per share in the quarter under review.
Factors to Note
Soft consumer demand due to the inflationary environment and incremental promotional pressures is likely to have weighed on Macy’s third-quarter performance. Markdowns to optimize inventory levels within overstock categories and the possibility of an elevated promotional environment, given the high inventory levels, might have hurt margins and the bottom line. Also, deleveraged SG&A expenses are concerns.
On its last earnings call, management had expected third-quarter net sales of $5,160-$5,230 million, indicating a decline from the net sales of $5,440 million reported in the year-ago period. M had envisioned third-quarter adjusted earnings of 15-21 cents a share, suggesting a decrease from $1.23 reported in the third quarter of fiscal 2021.
Despite the aforementioned headwinds, we expect Macy’s solid execution of the Polaris strategy, robust omni-channel capabilities, curated merchandise assortment and initiatives to provide customers with a seamless shopping experience to have provided some cushion to its quarterly performance.
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, which is precisely the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Macy's, Inc. price-eps-surprise | Macy's, Inc. Quote
Macy’s currently has a Zacks Rank #3 and an Earnings ESP of +18.92%.
More Stocks With Favorable Combinations
Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season:
lululemon athletica LULU currently has an Earnings ESP of +1.50% and a Zacks Rank #2. LULU is likely to register an increase in the bottom line from the year-ago quarter’s reported figure when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.95 per share over the past 30 days, suggesting 20.4% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
lululemon athletica’s top line is expected to rise from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.80 billion, suggesting a 24.4% rise from the figure reported in the prior-year quarter. LULU delivered an earnings beat of 10.4%, on average, in the trailing four quarters.
Dollar General DG has an Earnings ESP of +2.35% and a Zacks Rank #3, currently. DG is likely to register top-line growth from the year-ago fiscal quarter’s tally in its third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, suggesting 10.7% growth from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for Dollar General’s earnings for the fiscal third quarter is pegged at $2.54 per share, suggesting 22.1% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Dollar Tree DLTR has an Earnings ESP of +6.57% and a Zacks Rank of 3, currently. DLTR is likely to register top-line growth from the year-earlier fiscal quarter’s actuals when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.83 billion, suggesting 6.5% growth from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for Dollar Tree’s earnings for the fiscal third quarter is pegged at $1.16 per share, suggesting 20.8% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DLTR delivered an earnings beat of 8.6%, on average, in the trailing four quarters.
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Macy's, Inc. (M) : Free Stock Analysis Report
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