NEW YORK (TheStreet) --Macy's Inc. (M) is scheduled to report its 2014 third quarter earnings results before the market open on Wednesday morning. Analysts are expecting the department store giant to post a year-over-year increase in earnings and revenue for the quarter.
Analysts polled by FactSet are anticipating earnings per share of 51 cents, on revenue of $6.35 billion for the most recent quarter.
Last year, Macy's reported earnings per share of 47 cents, on sales of $6.28 billion, for the 2013 third quarter.
When Macy's announced its 2014 second quarter results in August its earnings missed analysts' expectations. However, Macy's has topped estimates for the prior three quarters, as well as during 11 of the last 12 quarters, MarketWatch reports.
Shares of Macy's are up by 0.12% to $59.33 in mid-morning trading on Tuesday.
Separately, TheStreet Ratings team rates MACY'S INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate MACY'S INC (M) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 3.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.24% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, M should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- MACY'S INC has improved earnings per share by 11.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MACY'S INC increased its bottom line by earning $3.90 versus $3.29 in the prior year. This year, the market expects an improvement in earnings ($4.40 versus $3.90).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Multiline Retail industry average, but is less than that of the S&P 500. The net income increased by 3.9% when compared to the same quarter one year prior, going from $281.00 million to $292.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Multiline Retail industry and the overall market, MACY'S INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: M Ratings Report