Positive Earnings Are Expected for Macy's

By Andrew Keene  NOV 06, 2012 1:25 PM

High consumer confidence and positive same store sales should contribute to encouraging earnings from the retailer.

 


MINYANVILLE ORIGINAL Macy’s, Inc. (NYSE:M), which operates under two brands, Macy’s and Bloomingdale’s, will report its quarterly earnings before the opening bell tomorrow morning, November 7. The company operates 840 stores, which should be performing well since consumer confidence has been high since August.
 
The stock has moved an average of 3.2% on earnings. Macy's has traded within a $12.50 range over the last 12 months, and it is currently near the high of $42.17, up 28% since January. The ATM straddle is suggesting a 5% move in the near term November contract.
 
Macy’s has shown some positive same store sales in the last few months and should have a nice holiday season due to confident consumers. Macy’s has beat earnings forecasts in the last five quarters. This quarter analysts expect the Cinncinati-based company to report that EPS fell roughly 10% to $0.29 on revenue of over $6 billion, up 3% from the third quarter last year.

Looking ahead, fourth-quarter sales are expected to grow by over $700 million over last year.

No positions in stocks mentioned.