For Immediate Release
Chicago, IL - February 21, 2012 - Zacks.com announces the list
of stocks featured in the Analyst Blog. Every day the Zacks Equity
Research analysts discuss the latest news and events impacting
stocks and the financial markets. Stocks recently featured in the
blog include
Macy's, Inc.
(
M
),
Dillard's Inc.
(
DDS
),
Saks Incorporated
(
SKS
),
Royal Caribbean Cruises Ltd.
(
RCL
) and
Carnival Corporation's
(
CCL
).
Get the most recent insight from Zacks Equity Research with the
free Profit from the Pros newsletter:
http://at.zacks.com/?id=5513
Here are highlights from Friday's Analyst Blog:
Earnings Preview: Macy's
Macy's, Inc.
(
M
), one of the leading department store retailers in the United
States, is scheduled to report its fourth quarter and fiscal 2011
financial results before the market opens on Tuesday, February 21,
2012.
The current Zacks Consensus Estimate for the quarter is $1.65
per share, which reflects growth of 3.8% from the prior-year
quarter's earnings. Estimates currently range between a low of
$1.64 and a high of $1.67 per share. The Zacks Consensus Estimate
for revenue is at $8,700 million for the fourth quarter.
The Zacks Consensus Estimate for fiscal 2011 is $2.82 per share.
Furthermore, analysts polled by Zacks expect full year revenue to
be $26,391 million.
Recap of Third-Quarter 2011
Macy's posted third-quarter 2011 results that outpaced Zacks'
expectations on the back of healthy sales, improved operating
margin and effective cost management. Consequently, the company
raised its full year earnings outlook.
The quarterly earnings of 32 cents per share outperformed the
Zacks Consensus Estimate of 16 cents, and increased fourfold from 8
cents earned in the prior-year quarter, buoyed by My Macy's
localization initiatives, omnichannel integration and robust online
sales.
The Cincinnati, Ohio-based company said that total sales grew
4.1% to $5,853 million in the quarter from $5,623 million in the
prior-year period. However, total revenue fell short of the Zacks
Consensus Estimate of $5,882 million.
Comparable-store sales for the quarter climbed 4%, which met the
lower end of the guidance range of 4% to 4.5%.
Zacks Agreement & Magnitude
Of the 15 analysts following the stock, six revised upward in
the last 30 days for the fourth quarter of 2011, which led to an
increase of 3 cents in the Zacks Consensus Estimate. For fiscal
2011, eight analysts moved up their estimates, also resulting in a
rise of 3 cents in the Zacks Consensus Estimate. None of the
analysts have made a downward revision to their estimates.
What Drives Estimate Revisions
Clearly, a positive sentiment is palpable among analysts, who
remain optimistic about Macy's performance. Zacks Consensus
Estimates have been on the rise with the majority of analysts
remaining bullish on the stock.
Macy's said that sales for the fourth quarter rose 5.5% to
$8,723 million, whereas for fiscal 2011 it climbed 5.6% to $26,404
million. Comparable-store sales climbed 5.2% and 5.3% for the
fourth quarter and fiscal 2011, respectively. Online sales, which
include sales from macys.com and bloomingdales.com, continued to
show growth momentum in the fourth quarter and fiscal 2011, soaring
40% and 39.6%, respectively.
The company went on to announce an increased earnings guidance,
thereby further bolstering analysts' confidence in the stock, who
tweaked their estimates to better align with management's
projections.
Macy's now projects earnings in the range of $1.63 to $1.65 for
the fourth quarter and between $2.81 and $2.83 for fiscal 2011.
Management had earlier forecasted earnings between $1.55 and $1.60
for the fourth quarter and between $2.73 and $2.78 for the full
year.
Positive Earnings Surprise History
With respect to earnings surprises, Macy's has topped the Zacks
Consensus Estimate over the last four quarters in the range of 5.3%
to 100%. The average remained at positive 47.3%.
To Conclude
The U.S. economy is still not out of the woods and the European
debt-crisis continues to take its toll. Amid such an economic
upheaval, Macy's has been moving on and keeping its upbeat note on
the back of relentless endeavors to keep itself on a growth
trajectory.
The company's sound fundamentals across its Macy's and
Bloomingdale's business is mirrored through strong fourth quarter
sales results. Management believes that it will sustain the tempo
in 2012, as the year presents enormous opportunity to enhance
market share.
In an attempt to increase sales, profitability and cash flows,
the company has been taking steps such as integration of
operations, consolidation of divisions, customer-centric
localization initiatives, as well as developing e-commerce and
online order fulfillment centers. Moreover, Macy's continues to
focus on price optimization, inventory management and merchandise
planning to drive traffic.
Macy's department stores sell a wide range of merchandise. Its
products include men's, women's, and children's apparel and
accessories, cosmetics, home furnishings and other consumer
goods.
Macy's, which competes with
Dillard's Inc.
(
DDS
) and
Saks Incorporated
(
SKS
), currently operates approximately 850 department stores in 45
states, the District of Columbia, Guam and Puerto Rico.
Currently, we have a long-term 'Outperform' rating on the stock.
Moreover, Macy's holds a Zacks #1 Rank, which translates into a
short-term 'Strong Buy' rating and correlates with our long-term
view.
Royal Caribbean Downgraded
We recently downgraded our rating on Miami-based
Royal Caribbean Cruises Ltd.
(
RCL
) from Neutral to Underperform.
The second largest company in the cruise vacation industry was
downgraded mainly based on a decline in bookings after the recent
sinking of its peer
Carnival Corporation's
(
CCL
) ship and the expected increase in the cost structure.
We are a bit doubtful about the cruising sector in the near term
after Carnival's ship Costa Concordia ran aground in mid-January on
Italy's west coast. The disaster hit the industry in the wake of
the wave season between January and March. The recent tragedy
resulted in subdued bookings. Royal Caribbean's overall booking
volumes in North America came down. In Europe, where the incident
took place, the cut in bookings has been steeper. Business in APMEA
was also down slightly. The company expects a 20% decline in new
bookings during the peak of wave season.
The company made some changes related to the international
distribution system and shifted some deployment for strategic
purposes. This will have a positive impact on yields, but a
negative effect on costs. Moreover, investment related to ship
revitalization, international expansion and technology investments
will drive yield improvements going forward but put pressure on
cost structure at the current level.
While Royal Caribbean's new ships continue to perform well,
going forward we expect them to cannibalize existing fleet sales,
resulting in pressure on pricing as well as net yields.
Agreement - Estimate Revisions
Based on the above fundamentals, four out of 6 analysts'
estimates moved southward over the last 30 days for the upcoming
quarter. For fiscal 2012, all 10 analysts slashed their
estimates.
Magnitude - Consensus Estimate Trend
Over the last 30 days, we noticed a drastic decline in
estimates, which fell 18 cents for the upcoming quarter and 93
cents for fiscal 2012. The current Zacks Consensus Estimate for the
third quarter and fiscal 2012 are pegged at 16 cents and $2.08,
respectively.
Royal Caribbean currently retains a Zacks #5 Rank, which
translates into a short-term 'Strong Sell' rating.
Want more from Zacks Equity Research? Subscribe to the free
Profit from the Pros newsletter:
http://at.zacks.com/?id=5515
.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and
qualitative analysis to help investors know what stocks to buy and
which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly
traded stocks. Our analysts are organized by industry which gives
them keen insights to developments that affect company profits and
stock performance. Recommendations and target prices are six-month
time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides
highlights of the latest analysis from Zacks Equity Research.
Subscribe to this free newsletter today:
http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc.,
which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew
he could find patterns in stock market data that would lead to
superior investment results. Amongst his many accomplishments was
the formation of his proprietary stock picking system; the Zacks
Rank, which continues to outperform the market by nearly a 3 to 1
margin. The best way to unlock the profitable stock recommendations
and market insights of Zacks Investment Research is through our
free daily email newsletter; Profit from the Pros. In short, it's
your steady flow of Profitable ideas GUARANTEED to be worth your
time! Register for your free subscription to Profit from the Pros
at
http://at.zacks.com/?id=5518
.
Visit
http://www.zacks.com/performance
for information about the performance numbers displayed in this
press release.
Follow us on Twitter:
http://twitter.com/zacksresearch
Join us on Facebook:
http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an
offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
CARNIVAL CORP (
CCL
): Free Stock Analysis Report
DILLARDS INC-A (
DDS
): Free Stock Analysis Report
MACYS INC (
M
): Free Stock Analysis Report
ROYAL CARIBBEAN (
RCL
): Free Stock Analysis Report
SAKS INC (
SKS
): Free Stock Analysis Report
To read this article on Zacks.com click here.