Macy's Inc Stock Surges on Strong Q1 Earnings Beat

Macy's Inc Stock Surges on Strong Q1 Earnings Beat

BMO Capital Markets set a $38.00 target price on Macy's and gave the stock a "buy" rating in a research report on Friday, January 5th. The stock was last up about 9 percent. The stock now has an average rating of "Hold" and a consensus target price of $26.63. The company reported $2.82 earnings per share for the quarter, beating the Thomson Reuters' consensus estimate of $2.71 by $0.11. During the quarter, analysts expected that the company would generate earnings in the amount of $0.37 per share. LSV Asset Management now owns 3,916,854 shares of the company's stock worth $98,665,000 after purchasing an additional 144,600 shares during the last quarter. He also noted that the shift of the big Friends and Family promotion to the first quarter helped results. Analysts only expected that same store sales would rise by 1.4%.

Net sales rose 3.6% to $5.54 billion in the quarter. "We also saw continued healthy consumer spending and significant improvements in worldwide tourism". While we have more work to do, the continuing improvement in our stores is encouraging and we once again achieved double-digit growth in the digital business. She thinks Macy's needs to close more stores than it already has and may have made the most it can from real estate sales.

"Our first quarter performance reflects solid execution of our North Star Strategy, including merchandising and marketing activities". It also had significant improvements in worldwide tourism, which was up 10 percent - its best numbers since 2014. "Heading into the second quarter, we are intensely focused on laying the foundation for our 2018 planned programs to support improved performance in the back half of the year". The business had revenue of $8.67 billion during the quarter, compared to analyst estimates of $8.70 billion. Sales at company-owned stores open at least a year increased 3.9 percent. This was the second straight quarter of same-store sales growth.

As mentioned above, Macy's is having an incredibly strong day in the market today after the company announced its first quarter results. In the same period of a year ago, the retailer said it had EPS of $0.24 and $5.34 billion in revenue. This compares to $80 million, or 1.5 percent of sales, in the first quarter of 2017, apart from premiums on the early retirement of debt. Net operating cash flow jumped 36% to $322 million. The company has come to a mutual agreement to end the joint venture with Fung Retailing Limited. It will remain active on Alibaba's e-commerce platform TMall and social media channels. The winning formula for Macy's, Inc.is a healthy brick & mortar business, robust e-commerce and a great mobile experience. Macy's updated its FY19 guidance to $3.75-3.95 EPS.

A number of research firms have recently weighed in on M. Jefferies Group reissued a "hold" rating on shares of Macy's in a research report on Tuesday, February 27th. This is a 20-cents increase over its previous outlook. In particular, we're interested in following the recovery now being seen at Macy's as sales continue to rise.

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