Macy’s Inc (NYSE: M) is having an incredibly strong day in the market today, and for good reason. The company reported its earnings, and while analysts have been relatively bearish on the stock as of late, the quarterly results were anything but. Of course, the positive earnings led to excitement among investors, sending the stock on a tear for the top. Today, we’ll talk about:
- What we saw from earnings;
- how the stock is reacting to the news;
- and what we’ll be watching for with regard to M stock ahead.
What We Saw From $M Earnings
As mentioned above, Macy’s is having an incredibly strong day in the market today after the company announced its first quarter results. Here’s what we saw from the report:
- Earnings – In terms of earnings, the company did overwhelmingly well. During the quarter, analysts expected that the company would generate earnings in the amount of $0.37 per share. However, the company beat that expectation by a wide margin, producing earnings in the amount of $0.48 per share.
- Revenue – Revenue also proved to be a driver of momentum in M stock. During the quarter, analysts expected that the company would generate revenue in the amount of $5.4 billion. However, the company actually generated revenue in the amount of $5.5 billion, handily beating expectations.
- Same Store Sales – Perhaps the most impressive line on the report had to do with same store sales. During the quarter, the company generated same store sales growth in the amount of 4.2%. Analysts only expected that same store sales would rise by 1.4%.
In a statement, Neil Saunders of GlobalData Retail had the following to offer with regard to the earnings report:
After a good holiday season, there was a question as to whether Macy’s could continue to deliver a recovery… Today’s results answer in the affirmative … suggesting that Macy’s recovery is gaining momentum.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. While there’s no doubt that Macy’s has had its struggles in the past, the company is beating expectations now, and now is what investors care about. So, it’s no surprise to see that the stock is making a run for the top today. At the moment (10:41), M stock is trading at $31.80 per share after a gain of $1.87 per share or 6.25% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on M stock. In particular, we’re interested in following the recovery currently being seen at Macy’s as sales continue to rise. Nonetheless, we’ll keep following the story closely and bringing the news to you as it breaks!
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