) is slated to report its second-quarter fiscal 2013 results
before the market opens on Aug 14, 2013. In the last quarter, it
posted a positive surprise of 3.8%. 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
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 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 -1.28%. This is because the Most Accurate
Estimate stands at 77 cents, while the Zacks Consensus Estimate
is pegged at 78 cents.
Zacks Rank #4 (Sell):
Macy's Zacks Rank #4 (Sell) lowers the predictive power of ESP.
The Zacks Rank #4 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:
), Earnings ESP of +2.19% and a Zacks Rank #2 (Buy).
New York & Company Inc.
), Earnings ESP of +33.33% and a Zacks Rank #3 (Hold).
), Earnings ESP of +4.17% and a Zacks Rank #3 (Hold).
CABELAS INC (CAB): Free Stock Analysis Report
MACYS INC (M): Free Stock Analysis Report
NEW YORK & CO (NWY): Free Stock Analysis
PVH CORP (PVH): Free Stock Analysis Report
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