Macy's (NYSE:M) Quarterly Earnings Preview

• Analysts predict a slight loss of $0.01 per share, marking a significant year-over-year decline.
• Revenue is expected to decrease by 2.9% to $4.72 billion.
• The company's financial ratios such as P/E and debt-to-equity indicate its valuation and financial health.

Macy's (NYSE:M) is a well-known American department store chain that offers a wide range of products, including clothing, accessories, and home goods. As a major player in the retail industry, Macy's competes with other large retailers like Nordstrom and J.C. Penney. The company is preparing to release its quarterly earnings on November 26, 2024, before the market opens.

Analysts expect Macy's to report a slight loss of $0.01 per share for the quarter ending October 2024. This represents a significant year-over-year decline of 104.8%. The consensus earnings per share (EPS) estimate has been revised downward by 1.2% over the past 30 days, indicating a reassessment by analysts. Such revisions often predict potential investor actions regarding the stock, as highlighted by empirical research.

Macy's revenue for this period is projected to be approximately $4.72 billion, reflecting a decrease of 2.9% compared to the same quarter last year. Despite this decline, the company's price-to-earnings (P/E) ratio is 22.74, showing the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio is 0.18, suggesting that investors are paying 18 cents for every dollar of sales.

The enterprise value to sales ratio for Macy's is 0.41, reflecting the company's total valuation relative to its sales. Additionally, the enterprise value to operating cash flow ratio is 8.15, indicating how many times the operating cash flow can cover the enterprise value. Macy's earnings yield is 4.40%, representing the percentage of each dollar invested that was earned by the company.

Macy's maintains a debt-to-equity ratio of 0.70, indicating that the company uses 70 cents of debt for every dollar of equity. The current ratio is 1.48, suggesting that Macy's has $1.48 in current assets for every dollar of current liabilities. This implies a healthy liquidity position, which is crucial for the company's financial stability.