Macy’s Inc announces Q4 and annual results tomorrow. Will the results show a return to profitability?

By: Motiur Rahman
Motiur Rahman
Md Motiur is a Financial Analyst at Invezz covering the North American, European and Asian stock markets. He has… read more.
on Feb 21, 2022
  • Macy’s Inc. annual results are expected to show EPS around $1.80 from the -$12.68 per share loss last year.
  • The share price stabilised at $25 over the last four weeks.
  • Momentum shows potential to break through the $28 resistance to establish a new level at $31.

Macy’s Inc. (NYSE:M) will announce Q4 and fiscal year results on 22nd February 2022. In 2021 the company reported losses for the first time in a decade due to impacts of the pandemic including supply chain challenges.

The company sailed through the last year with adequate inventory. For that reason, the EPS is projected to rise from the -$12.68 reported in 2021 to about $1.80 for the year ended Jan 29, 2022.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

As the market waits to see whether the company’s EPS is in line with the previous, it also discounts the fact that the company faces the pressure of rising costs due to a tight macroeconomic environment.

Macy’s Inc., being in the consumer cyclical sector, means that it is likely to face pressure from changing consumption patterns in the coming year hence affecting the valuation.

Macy’s Inc. share price stable at $25

Source – TradingView

Macy’s share price stabilised at $25 over the last four weeks. The average closing prices ranged between $23 and $26.50. The trended support level remains at $23 with the potential resistance at $28.

Depending on the direction of the results that Macy’s releases tomorrow, the share price has the potential of testing and pushing through the resistance level of $28. Technical analysis, however, shows that the price is highly unlikely to go beyond $31 in the event the company breaks the current resistance level. Overall the company is expected to maintain the share price momentum.

Summary 

Macy’s Inc. will announce Q4 and fiscal year results on 22nd February with the expectation that the results will show a return to profitability. The Achilles heel in the company’s performance going forward will be the cyclical economy. The share price has stabilised at $25 with the potential to break through the $28 resistance to establish a new level at $31.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

  1. Etoro, trusted by over 13m users worldwide. Register here >
  2. Capital.com, simple, easy to use and regulated. Register here >

*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.