Zacks Research Has Negative Forecast for Macy's Q3 Earnings

Key Points

• Zacks Research lowered Macy’s Q3 2027 earnings estimate to a loss of $0.19 per share from a previous estimate of $0.11, while maintaining a “Hold” rating.
• Macy’s most recent quarter exceeded expectations, with EPS of $0.63 versus the $0.37 consensus and revenue of $5.06 billion, up 1.1% year over year.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and a $22.78 target price, while Macy’s offers a quarterly dividend of $0.1915, yielding about 3.4% annually.

Macy's, Inc. (NYSE:M - Free Report) - Stock analysts at Zacks Research cut their Q3 2027 earnings estimates for shares of Macy's in a research note issued to investors on Thursday, September 24th. Zacks Research analyst Team now anticipates that the company will post earnings of ($0.19) per share for the quarter, down from their previous estimate of ($0.11). Zacks Research has a "Hold" rating on the stock. The consensus estimate for Macy's' current full-year earnings is $2.34 per share. Zacks Research also issued estimates for Macy's' Q2 2028 earnings at $0.67 EPS, Q3 2028 earnings at ($0.24) EPS and Q2 2029 earnings at $0.71 EPS.

Macy's (NYSE:M - Get Free Report) last released its earnings results on Thursday, September 10th. The company reported $0.63 EPS for the quarter, topping the consensus estimate of $0.37 by $0.26. The company had revenue of $5.06 billion during the quarter, compared to analysts' expectations of $4.81 billion. Macy's had a net margin of 3.29% and a return on equity of 13.21%. The business's revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the business earned $0.41 EPS. Macy's has set its Q3 2026 guidance at -0.230--0.190 EPS and its FY 2026 guidance at 2.150-2.350 EPS.

A number of other brokerages have also weighed in on M. BTIG Research reaffirmed a "neutral" rating on shares of Macy's in a report on Friday, September 11th. TD Cowen reissued a "hold" rating on shares of Macy's in a research note on Monday, September 14th. Morgan Stanley reissued an "overweight" rating and issued a $30.00 price target on shares of Macy's in a report on Monday, July 6th. Evercore set a $22.00 price target on Macy's in a research note on Thursday, June 4th. Finally, Weiss Ratings lowered Macy's from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, September 10th. Two research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $22.78.

Macy's Trading Up 0.0%

Shares of Macy's stock opened at $22.64 on Monday. The firm has a market cap of $5.91 billion, a price-to-earnings ratio of 8.29 and a beta of 1.41. Macy's has a 52-week low of $16.41 and a 52-week high of $26.58. The company's 50-day simple moving average is $23.27 and its 200-day simple moving average is $21.64. The company has a quick ratio of 0.48, a current ratio of 1.59 and a debt-to-equity ratio of 0.49.

Hedge Funds Weigh In On Macy's

Hedge funds have recently bought and sold shares of the company. QRG Capital Management Inc. raised its holdings in Macy's by 22.5% during the second quarter. QRG Capital Management Inc. now owns 37,118 shares of the company's stock worth $874,000 after purchasing an additional 6,817 shares during the last quarter. Sequoia Financial Advisors LLC grew its holdings in Macy's by 19.5% in the second quarter. Sequoia Financial Advisors LLC now owns 38,689 shares of the company's stock valued at $911,000 after purchasing an additional 6,310 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new stake in Macy's in the second quarter valued at $735,000. IFP Advisors Inc increased its position in shares of Macy's by 559.1% in the second quarter. IFP Advisors Inc now owns 10,229 shares of the company's stock valued at $241,000 after buying an additional 8,677 shares in the last quarter. Finally, Allworth Financial LP increased its position in shares of Macy's by 37.0% in the second quarter. Allworth Financial LP now owns 2,270 shares of the company's stock valued at $53,000 after buying an additional 613 shares in the last quarter. 87.36% of the stock is owned by hedge funds and other institutional investors.

Macy's Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.1915 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.77 annualized dividend and a dividend yield of 3.4%. Macy's's payout ratio is 28.21%.

Macy's Company Profile

Macy's, Inc is an American omnichannel retailer that sells a broad range of merchandise through department stores, specialty stores and digital platforms. Its product offerings include apparel, accessories, beauty products, home furnishings, jewelry, furniture and other consumer goods.

The company operates through several well-known retail banners, including Macy's, Bloomingdale's and Bluemercury. Macy's serves customers primarily in the United States through its stores and e-commerce websites, while Bloomingdale's offers fashion, accessories, beauty and home merchandise through department stores, outlets and digital channels.

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