Earnings Preview: Macy's (M) Q1 Earnings Expected to Decline

Core Viewpoint - Macy's is anticipated to report a year-over-year decline in earnings and revenues for the quarter ended April 2025, which could significantly influence its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on May 28, 2025, with a consensus EPS estimate of $0.14, reflecting a year-over-year decrease of 48.2% [3]. - Revenues are projected to be $4.47 billion, down 7.7% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.66% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +2.11% suggests that analysts have recently become more optimistic about Macy's earnings prospects, despite the stock's Zacks Rank of 4, which complicates predictions of an earnings beat [10][11]. Earnings Surprise History - In the last reported quarter, Macy's exceeded the expected EPS of $1.55 by delivering $1.80, resulting in a surprise of +16.13% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Market Reaction Considerations - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [14]. - While Macy's does not appear to be a strong candidate for an earnings beat, it is essential for investors to consider additional factors before making investment decisions [16].