Macy's (M) Tops Q4 Earnings and Revenue Estimates

Core Insights - Macy's reported quarterly earnings of $1.67 per share, exceeding the Zacks Consensus Estimate of $1.53 per share, but down from $1.8 per share a year ago, representing an earnings surprise of +9.39% [1] - The company achieved revenues of $7.64 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.53%, although this is a decrease from $7.77 billion in the same quarter last year [2] - Macy's has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise of +9.39% indicates strong performance relative to expectations, while the previous quarter saw a significant surprise of +169.23% when the company reported earnings of $0.09 against an expected loss of $0.13 [1][2] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $4.57 billion, and for the current fiscal year, it is $2.09 on revenues of $21.35 billion [7] Stock Performance and Outlook - Macy's shares have declined approximately 23.3% since the beginning of the year, contrasting with the S&P 500's decline of 1.9% [3] - The company's Zacks Rank is currently 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions prior to the earnings release [6] Industry Context - The Retail - Regional Department Stores industry, to which Macy's belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Macy's stock performance [5]