Macy's Stock Soars After Crushing Q1 Earnings Forecasts, Lifting Views

Macy's Stock Soars After Crushing Q1 Earnings Forecasts, Lifting Views

The department store has kept its clearance racks in check and has less stale inventory on the floor.As a result, Macy's managed to cross the first quarter earnings and sales expectations of the analysts. The company's stock has jumped more than 9% today, as of this writing.

Like its peers, Macy's has faltered in the past few years as it struggled to adjust to a market where shoppers increasingly buy goods online. Deutsche Bank boosted their target price on shares of Macy's from $27.00 to $28.00 and gave the company a "hold" rating in a report on Monday, February 26th.

The company said it has focused on selling a more curated assortment of trendier clothes. Macy's now has an average rating of "Hold" and a consensus price target of $26.63.

And this timing shift likely means second-quarter results are going to look relatively weak compared to a year earlier. Revenue is seen down 1% to up 0.5%, up from a prior view of down 0.5%-2%. Macy's has a 12 month low of $31.41 and a 12 month high of $33.75. The company reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.07, Bloomberg Earnings reports. Macy's had a net margin of 6.23% and a return on equity of 24.93%.

On a call with investors to discuss the company's first quarter, CEO Jeff Gennette said the momentum picked up at the end of last year during the 2017 holiday season carried into the start of the new year, "in fact, exceeding our own expectations on most measures", he noted.

Macy's chief financial officer Karen Hoguet said during a conference call with analysts that revenue from tourists rose 10% from a year ago.

Macy's shares rose $2.67 to $32.60 on Wednesday.

Get access to our daily newsletters, Best Stocks List, POWR Ratings, and much more! Apart From this, the company estimates that comparable sales were up 1.7 percent on an owned plus licensed basis. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

In other Macy's news, Director Marna C. Whittington sold 20,000 shares of the stock in a transaction on Friday, March 2nd. The stock was purchased at an average cost of $29.10 per share, for a total transaction of $291,000.00. Following the sale, the executive vice president now directly owns 10,000 shares in the company, valued at $294,200. The disclosure for this purchase can be found here. Analysts were calling for earnings of $3.61 a share.

A number of hedge funds have recently bought and sold shares of the business.

During the first quarter of the year, Macy's Inc reported operating income of $238 million.

This was the second quarter of same-store sales growth in a row. Dimensional Fund Advisors LP now owns 8,864,888 shares of the company's stock worth $263,642,000 after acquiring an additional 1,064,651 shares in the last quarter.