) is slated to report its first-quarter fiscal 2013 results
before the market opens on May 15, 2013. In the last quarter, it
posted a positive surprise of 3.5%. Let's see how things are
shaping up for this announcement.
Factors This Past Quarter
My Macy's localization initiatives, omnichannel integration,
robust online sales and effective cost management were the
driving factors in the last quarter. In an attempt to increase
sales, profitability and cash flow, the company has been taking
steps such as integration of operations, consolidation of
divisions, customer-centric localization initiatives, as well as
developing e-commerce business and online order fulfillment
centers. Moreover, Macy's continues to focus on price
optimization, inventory management and merchandise planning to
Despite the efforts our proven model does not conclusively
show that Macy's is likely to beat earnings this quarter. This is
because a stock needs to have both a positive earnings Expected
Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 for this to happen. This is not
the case here, as you will see below.
Negative Zacks ESP:
ESP for Macy's is -1.89%. This is because the Most Accurate
Estimate stands at 52 cents, while the Zacks Consensus Estimate
is pegged at 53 cents.
Zacks Rank #3 (Hold):
Macy's Zacks Rank #3 (Hold) lowers the predictive power of ESP
because the Zacks Rank #3 when combined with negative ESP makes
surprise prediction difficult. We caution against stocks with
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
The Gap, Inc.
), Earnings ESP of +3.51% and a Zacks Rank #2 (Buy).
J&J Snack Foods Corp.
), Earnings ESP of +0.90% and a Zacks Rank #2 (Buy).
), Earnings ESP of +8.33% and a Zacks Rank #3 (Hold).
GAP INC (GPS): Free Stock Analysis Report
J&J SNACK FOODS (JJSF): Free Stock Analysis
MACYS INC (M): Free Stock Analysis Report
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
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