M - Macy's Q3 results preview: Softer earnings from inflation hit demand

2023-11-15 12:17:17 ET

Macy's ( NYSE: M ) is scheduled to announce Q3 earnings results on Thursday, November 16th, before the market opens.

The consensus EPS Estimate is $0.01 (-98.1% Y/Y) and the consensus Revenue Estimate is $4.83B (-7.6% Y/Y).

The department store chain, which has fallen about 37.41% since the start of the year, has seen a slump in demand amid elevated inflation as consumers continue to hold off on discretionary spending.

Nevertheless, last month the stock was upgraded to "Buy" from "Hold" by CFRA, who said that new confidence in Macy's stems from the view that the company has a solid digital business offsetting the downtrend in large department stores.

"Macy’s has spent the past eight months paying down its heavy debt load, which should give the company more financial flexibility and boost earnings as interest payments fall," added CFRA analysts.

In its previous quarter earnings, Macy's delivered an earnings beat , however, shares fell as the company warned of weak consumer spending, and commented , "The macro environment really is having the lion's share of the impact on credit and is a real indicator of where we think the health of the consumer is and supporting our cautious approach".

Macy's is marked a Hold by the Seeking Alpha Quant rating system, with its valuation rated an A+ while growth and momentum are D+ and D, respectively.

Over the last two years, M has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.

Over the last three months, EPS estimates have seen 0 upward revisions and 14 downward. Revenue estimates have seen one upward revision and eight downward.

Recent earnings Analysis from our contributors: Macy's: Property Portfolio Will Not Save It As Profitability Tumbles

More on Macy's

• Macy's: Still Being Dumped On
• Macy's: Navigating Modern Retail Challenges With Legacy Strengths
• Rising retail theft seen threatening brick-and-mortar model
• Macy's is upgraded by CFRA in department store sector outlier call

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