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Macy’s shares gain the most in 15 months on Thursday as third-quarter earnings beat estimates, full-year guidance reaffirmed

Macys Incs third-quarter adjusted earnings, reported on Thursday, outstripped market expectations. However, its comparable sales fell at a steeper rate than anticipated due to lower foot traffic and fierce competition from on-line operators. Macys also reaffirmed its full-year 2017 guidance, which it had provided previously.

Macy’s shares closed higher for a second consecutive trading session on Thursday. It has been the sharpest daily surge since August 11th 2016. The stock went up 10.98% ($1.93) to $19.50, after touching an intraday high at $20.08, or a price level not seen since October 27th ($20.50).

In the week ended on November 5th the shares of the department store chain lost 6.75% of their market value compared to a week ago, which marked a second consecutive period of decrease.

However, due to yesterdays gain, the stock has neutralized earlier losses and is now up 3.94% so far during the current month, following a 14.02% slump in October. The latter has been the sixth drop out of eight months and also the largest one since May.

For the entire past year, the shares of Macy’s Inc gained 2.37%. The stock has retreated 45.55% so far in 2017.

Sales at stores that are open at least 12 months, including sales in departments licensed to third parties, were reported to have shrunk 3.6% year-on-year during the third quarter ended on October 28th. In comparison, analysts on average had expected a lesser drop in comparable sales, by 2.6%.

Macy’s Incs total sales decreased to $5.281 billion during the third quarter from $5.626 billion during the same period a year earlier.

At the same time, the companys operating income rose to $121 million (2.3% of sales) during the latest quarter from $107 million (1.9% of sales) during the same period of 2016.

Net income attributable to shareholders increased to $36 million ($0.12 per share) during the quarter ended on October 28th from $17 million ($0.05 per share) a year ago.

Excluding restructuring and other costs, Macy’s earned $0.23 per share during the third quarter, following earnings of $0.17 per share during the same period of 2016. In comparison, the median forecast by analysts had pointed to earnings of $0.19 per share.

Meanwhile, Macy’s continues to expect a drop of between 2.0% and 3.0% in its comparable sales on an owned plus licensed basis for the full year.

The company also projects its total sales to decrease between 3.2% and 4.3% during fiscal year 2017.

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Macy’s Inc’s stock price, have a median target of $23.00, with a high estimate of $36.00 and a low estimate of $16.00. The median estimate is a 17.95% surge compared to the closing price of $19.50 on November 9th.

The same media also reported that 16 out of 24 surveyed investment analysts had rated Macy’s Inc’s stock as “Hold”, while 4 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Macy’s stock are presented as follows:

R1 – $19.71
R2 – $19.92
R3 (Range Resistance – Sell) – $20.12
R4 (Long Breakout) – $20.75
R5 (Breakout Target 1) – $21.48
R6 (Breakout Target 2) – $21.99

S1 – $19.29
S2 – $19.08
S3 (Range Support – Buy) – $18.88
S4 (Short Breakout) – $18.25
S5 (Breakout Target 1) – $17.52
S6 (Breakout Target 2) – $17.01

By using the traditional method of calculation, the weekly levels of importance for Macy’s Inc (M) are presented as follows:

Central Pivot Point – $18.77
R1 – $19.21
R2 – $20.06
R3 – $20.50
R4 – $20.94

S1 – $17.92
S2 – $17.48
S3 – $16.63
S4 – $15.78 is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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