Macy’s Q3 Earnings Preview: Analysts Predict a Dip, But What’s the Stock’s Future?
Retail giant Macy’s, Inc. (M) is gearing up to unveil its third-quarter financial results before the market opens on Wednesday, December 11th. The anticipation is high, but the general consensus among analysts paints a picture of a slight decline compared to the stellar performance of Q3 2022.
Analysts polled by Benzinga Pro project Macy’s to report earnings of 3 cents per share for the quarter, a significant drop from the 21 cents per share earned during the same period last year. Revenue is also expected to dip, with projections settling around $4.72 billion, slightly lower than the $4.86 billion recorded in Q3 2022. Despite these predictions, Macy’s stock closed up 1% on Tuesday, trading at $16.88, suggesting a degree of market confidence.
A Closer Look at Analyst Ratings:
The upcoming earnings report has sparked a flurry of analyst activity. Several prominent firms have weighed in on Macy’s stock, offering a range of opinions and price targets. Understanding these varied perspectives is crucial for investors considering a position in Macy’s:
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Telsey Advisory Group (Dana Telsey):
Maintained a Market Perform rating with a $17 price target on November 26th. Telsey boasts a 67% accuracy rate.*
Morgan Stanley (Alex Straton):
Maintained an Equal-Weight rating but reduced the price target from $18 to $17 on August 22nd. This analyst has an impressive 80% accuracy rate.*
Evercore ISI Group (Michael Binetti):
Maintained an In-Line rating while lowering the price target from $22 to $17 on July 16th. Binetti’s accuracy rate stands at 61%.*
TD Cowen (Adam Maeder):
Maintained a Hold rating and increased the price target from $20 to $21 on May 22nd. This analyst exhibits a 62% accuracy rate.*
JP Morgan (Matthew Boss):
Maintained an Overweight rating and raised the price target from $25 to $27 on May 22nd. Boss holds a notable 73% accuracy rate.Interpreting the Analyst Landscape:
The divergence in analyst opinions, ranging from cautious “Hold” and “Market Perform” ratings to more bullish “Overweight” assessments, underscores the inherent uncertainty surrounding Macy’s near-term prospects. While some analysts express concern over potential economic headwinds and their impact on consumer spending, others see opportunities for growth and recovery. The accuracy rates of these analysts offer valuable context, though it’s essential to remember that past performance doesn’t guarantee future success.
What’s Next for Macy’s?
The upcoming earnings release will be a pivotal moment for Macy’s. The results will not only confirm or refute analysts’ predictions but also provide critical insights into the retailer’s strategies for navigating the current economic climate. Investors and industry observers alike will be closely scrutinizing the company’s performance, guidance for the coming quarters, and its overall outlook. The market’s reaction to the earnings report is likely to be significant, shaping the trajectory of Macy’s stock in the short- and potentially long-term. Stay tuned for a comprehensive analysis of the Q3 results following their release on December 11th.
