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Macy’s report due Wednesday

Macy’s will report its second-quarter earnings for 2014 on Wednesday 13 August. The consensus is for earnings per share of $0.85 and revenue of $6.29 billion.

Macy's shop
Source: Bloomberg

Macy’s is trading at $60.41. The stock is up 4.4% since the company reported first-quarter figures for 2014 in May, in which EPS exceeded analysts' estimates but revenue missed expectations.

The department store chain is benefiting from its previous investment in IT, which has helped establish its online presence and given it an edge over its competitors. In May, the company maintained its full-year EPS guidance of $3.90-$3.95. The forward guidance if often more important than the figures for the previous three months.

As Alastair McCaig stated, JCPenney is due to report its second-quarter earnings on Thursday. The company is expected to reveal a negative EPS, and it is still undergoing a restructuring programme. Year-to-date Macy’s is up 13%, while JCPenney is up 4.1% over the same period.

Equity analysts are bullish on Macy’s, and out of the 24 reports, 18 are buys and six are holds.The stock is receiving support at the $56 level. It has found difficulty breaking through the $60 mark, but good results could push the share price to $64.

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