Macy’s (M) Stock: The Earnings Were Good. So Why Did It Drop?
TLDR
- Macy’s stock dropped as much as 8% after Q2 earnings despite beating estimates on both revenue and EPS
- Adjusted EPS came in at $0.63 vs. $0.35 expected, though $0.23 of that came from tariff refunds
- Net sales rose 1% to $4.87 billion; comparable sales grew 2.7% for a fifth straight positive quarter
- Macy’s raised full-year adjusted EPS guidance to $2.15-$2.35, up from $2.00-$2.20
- Q3 guidance calls for an adjusted loss of $0.19-$0.23 per share, which may be weighing on investor sentiment
Macy’s stock fell as much as 8% on Thursday after the retailer posted Q2 results that beat Wall Street estimates on both the top and bottom line. The stock was trading around $20.66 in premarket, down from a previous close of $21.51.
The earnings beat was clear on paper. Adjusted EPS came in at $0.63, up from $0.35 a year ago, and well above the $0.35 consensus estimate. Revenue reached $4.9 billion against expectations of $4.78 billion.
But there was a catch. Management flagged that the quarter included a $0.23-per-share net benefit from tariff refunds. Strip that out, and adjusted EPS was $0.40, a more modest 14% year-over-year gain, though still above the $0.37 estimate.
… Continue reading the full article at the original source below.
This content is automatically aggregated. Full credit goes to the original publisher (coincentral.com).
