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

Adjust Comment Print

Macy's, Inc.'s results for the first quarter of 2018 reflect continuing momentum in the business. American International Group Inc. now owns 23,923,612 shares of the company's stock valued at $602,636,000 after buying an additional 11,894,858 shares during the last quarter. He also noted that the shift of the big Friends and Family promotion to the first quarter helped results. Kistler Tiffany Companies LLC now owns 8,900 shares of the company's stock worth $224,000 after purchasing an additional 2,120 shares during the period. During the quarter, analysts expected that the company would generate earnings in the amount of $0.37 per share.

With proceeds from asset sales excluded, company earnings per diluted share were 42 cents versus 12 cents in the first quarter of 2017. Advisory Services Network LLC raised its position in Macy's by 18.1% during the fourth quarter. Schwab Charles Investment Management Inc. now owns 2,696,773 shares of the company's stock valued at $67,932,000 after buying an additional 497,496 shares during the last quarter. Insiders own 2.36% of the company's stock. In recent weeks, the company acquired the retail concept Story, an acquisition that brought with it a much-talked-about innovator in founder Rachel Shechtman, and also announced it has broadened its loyalty program beyond credit card holders and expanded its off-price Backstage business. Jefferies Group reiterated a "hold" rating on shares of Macy's in a report on Tuesday, February 27th. 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. Finally, Morgan Stanley lowered shares of Macy's from an "equal weight" rating to an "underweight" rating and cut their price target for the stock from $29.71 to $25.00 in a report on Thursday, May 10th. The company traded as low as $31.70 and last traded at $31.67, with a volume of 4139089 shares changing hands.

In other news, Director Deirdre P. Connelly sold 9,092 shares of Macy's stock in a transaction dated Thursday, March 8th. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The stock was sold at an average price of $29.25, for a total value of $265,941.00. Following the completion of the sale, the director now owns 16,184 shares in the company, valued at $473,382.

The U.S. department store chain also issued comparable sales growth guidance that topped estimates, boosting its shares 10 percent to $32.92 by midday. The firm has a market cap of $9.03 billion, a price-to-earnings ratio of 7.86, a price-to-earnings-growth ratio of 0.96 and a beta of 0.73. The company has a quick ratio of 0.45, a current ratio of 1.47 and a debt-to-equity ratio of 1.04.

Tencent Sees Profit Increase of 61% Thanks to Games Business
But adjusted earnings-per-share, which strips out one-time items, came to 1.92 yuan, missing the 1.94 yuan average estimate. That's still not cheap: But investors can now expect a return to the good old days of Tencent's shares heading ever higher.

The company reported revenues of $5.5 billion and earnings of 48 cents per share.

The retailer's net sales increased 3.6 percent to $5.54 billion, beating analyst predictions. Macy's had a return on equity of 24.93% and a net margin of 6.23%.

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

For the full year, Macy's expects earnings per share of between $3.75 and $3.95, $0.20 higher than its previous forecast.