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Macy's Third Quarter Earnings
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Macy's (NYSE:M) announced its results for the third quarter on November 7, 2012. Macy's is a retailer that sells apparel and accessories, cosmetics, home furnishings and other consumer goods.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: Macy's managed to beat EPS estimates, though the company's revenues failed to top expectations. The company reported 36 cents per share versus the 29 cents per share estimate and revenues of $6.08 billion versus the $6.13 billion estimate. EPS rose 12.5% while revenue climbed 3.8% from the same period last year. Macy's' revenue has grown during each of the past four quarters on a year-over-year basis. Macy's' profit rose 4.3% from last year's figures to $145 million during the third quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "We were pleased to deliver sales and earnings growth for the 11th consecutive quarter," said Terry J. Lundgren, chairman, president and chief executive officer of Macy's, Inc. "Our success in the third quarter reflected a combination of factors, as has been the case over the past several years. We continue to implement our My Macy's localization, omnichannel integration and enhanced customer engagement strategies with increasing precision, passion and success. This has helped us to deepen our relationship with customers and capture market share."
A Look Back: Net income has increased more than threefold year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 1290% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.88 a share to $2.04 over the last 90 days. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. Over the past three months, the average estimate for the fiscal year has climbed from $3.36 per to share to $3.39.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: Macy's managed to beat EPS estimates, though the company's revenues failed to top expectations. The company reported 36 cents per share versus the 29 cents per share estimate and revenues of $6.08 billion versus the $6.13 billion estimate. EPS rose 12.5% while revenue climbed 3.8% from the same period last year. Macy's' revenue has grown during each of the past four quarters on a year-over-year basis. Macy's' profit rose 4.3% from last year's figures to $145 million during the third quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "We were pleased to deliver sales and earnings growth for the 11th consecutive quarter," said Terry J. Lundgren, chairman, president and chief executive officer of Macy's, Inc. "Our success in the third quarter reflected a combination of factors, as has been the case over the past several years. We continue to implement our My Macy's localization, omnichannel integration and enhanced customer engagement strategies with increasing precision, passion and success. This has helped us to deepen our relationship with customers and capture market share."
A Look Back: Net income has increased more than threefold year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 1290% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.88 a share to $2.04 over the last 90 days. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. Over the past three months, the average estimate for the fiscal year has climbed from $3.36 per to share to $3.39.
by
Investopedia Staff
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