TheStreet's Jim Cramer discusses Macy's fourth quarter earnings.
Before today's market open, the Cincinnati-based retailer posted earnings of $2.09 per share, excluding some items, which topped analysts' expectations for earnings of $1.88 per share.
Revenue fell 5.3% to $8.87 billion year-over-year, but surpassed Wall Street's estimates of $8.83 billion.
Additionally, Macy's comparable sales dropped 4.3%. However, the decline was lower than the 4.7% decrease the department store anticipated.
"While 2015 was challenging, our sales trend improved in January as the weather turned colder in northern climate zones and Macy's and Bloomingdale's were well-stocked in coats, boots, sweaters, gloves, hats and other seasonal goods," Chairman and CEO Terry J. Lundgren said in a statement.
The retail giant has also started contacting potentially interested parties regarding partnerships or joint ventures involving its flagship and mall-based properties.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts Plus charitable trust, commented on the company's earnings: "Macy's looks like they finally could beat it and it is thrilling to see because it says that there's more to Macy's than just a strong dollar fallout."
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels and expanding profit margins.
As a counter to these strengths, the team also finds weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: M