Published: Wed, May 16, 2018
Business | By Kate Woods

Macy's Soars on Sales, Earnings Beat

Macy's Soars on Sales, Earnings Beat

To combat rivals, the department store chain has been focused on rolling out new concepts in stores, like branded pop-up shops, and expanding its off-price business, Macy's Backstage. ValuEngine upgraded shares of Macy's from a "hold" rating to a "buy" rating in a report on Thursday, March 1st. ValuEngine cut shares of Macy's from a "hold" rating to a "sell" rating in a research note on Wednesday, May 9th. The company has an average rating of Hold and a consensus price target of $26.49.

Macy's, updating its guidance for fiscal 2018. Macy's has a 12 month low of $31.41 and a 12 month high of $33.75. The stock had previously closed at $30.72. The stock showed a positive performance of 9.56% in the recent trading session at 11:13 a.m. EST. Revenue is seen down 1% to up 0.5%, up from a prior view of down 0.5%-2%.

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As mentioned above, Macy's is having an incredibly strong day in the market today after the company announced its first quarter results.

Earnings per share reported by Macy's Inc in the first quarter of the year came in at 48 cents. The retailer's comps were more than three percentage points higher than the FactSet consensus of 0.7%, cited by MarketWatch, and top-line sales were more than $10 million higher than the FactSet consensus of $5.43 billion. Macy's had a return on equity of 24.93% and a net margin of 6.23%.

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Analysts on average were expecting earnings of 37 cents per share, and revenue of $5.36 billion. Stockholders of record on Thursday, March 15th were given a $0.3775 dividend. But the results are a marked turnaround from how Macy's looked this time last year-and the year before that. The stock was purchased at an average cost of $29.10 per share, for a total transaction of $291,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Following the completion of the purchase, the chairman now directly owns 89,303 shares in the company, valued at $2,598,717.30. The disclosure for this sale can be found here. Analysts were calling for earnings of $3.61 a share, according to a Thomson Reuters survey. The department store retailer's operating income increased almost 8.7% year over year to $238 million, or about 4.3% of sales. Excluding a shift of Friends and Family from Q2 to Q1, same-store sales were up 1.7% on an owned plus licensed basis. Bank of New York Mellon Corp now owns 10,653,773 shares of the company's stock worth $268,367,000 after acquiring an additional 2,328,072 shares in the last quarter. Prudential Financial Inc. lifted its stake in Macy's by 75.3% during the third quarter. This compares to $0.12 per share in the first quarter of 2017. The fund bought 7,448 shares of the company's stock, valued at approximately $222,000. Finally, Doyle Wealth Management raised its position in Macy's by 8.9% during the first quarter.

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