Macy's Stock Soars After Crushing Q1 Earnings Forecasts, Lifting Views


The department store has kept its clearance racks in check and has less stale inventory on the floor.As a result, Macy's managed to cross the first quarter earnings and sales expectations of the analysts. Gordon Haskett raised shares of Macy's from a hold rating to a buy rating and set a $36.00 target price on the stock in a research report on Thursday, March 1st.

Several equities research analysts recently commented on M shares.

For the full year, Macy's expects earnings per share of between $3.75 and $3.95, $0.20 higher than its previous forecast. American International Group Inc. now owns 23,923,612 shares of the company's stock valued at $602,636,000 after buying an additional 11,894,858 shares during the last quarter. The stock was sold at an average price of $29.39, for a total transaction of $1,984,265.85.

The company posted a net income of $139 million, or $0.45 per share during the quarter. The company said that it had $0.48 in earnings per share (EPS) on $5.54 billion in revenue, which compares with consensus estimates from Thomson Reuters of $0.35 in EPS on revenue of $5.39 billion.

The company said it has focused on selling a more curated assortment of trendier clothes. Both reports took a toll on Macy's stock price. Ltd now owns 4,067 shares of the company's stock valued at $120,000 after buying an additional 1,787 shares during the period.

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First-quarter same-store sales rose 4.2 percent, easily beating Wall Street's 1.4 percent average estimate, as sales rose at its Bloomingdale's, Bluemercury and its own Macy's stores.

On the corporate news front, Macy's revealed that it has come up with a new approach to handle its business in China. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Institutional investors own 89.05% of the company's stock. Deutsche Bank upped their target price on shares of Macy's from $27.00 to $28.00 and gave the company a hold rating in a research report on Monday, February 26th. Macy's had a net margin of 6.23% and a return on equity of 24.93%. The stock was sold at an average price of $29.42, for a total transaction of $294,200.00. The disclosure for this sale can be found here.

Just last week, Morgan Stanley downgraded Macy's shares, citing declining sales and profit "pressure" from online players for the ratings change. They set a "neutral" rating and a $31.00 target price for the company. The stock now has a consensus rating of "Hold" and a consensus price target of $26.63. The company's stock has jumped more than 9% today, as of this writing.

Macy's increased its fiscal 2018 earnings per share expectations by 20 cents to $3.75 to $3.95, excluding certain charges.

For the thirteen-week period ended May 5, Macy's earned US$139mln, or US$.045 per share, which was more than a third higher than the year-ago quarter, when it earned US$78mln or US$.026 per share. It sells a wide range of items, such as accessories and apparel for women, men, and kids; home furnishings; cosmetics; and other accessories. It also operates as a spa and beauty products retailer.