Macy’s, Inc. (M): Analysts Are ‘Dead Wrong’ Says Jim Cramer

Retailer operator Macy’s, Inc. (NYSE:M), with nearly $21 billion in market cap, reported second-quarter earnings that turned out to be weaker than what analysts did expect for the quarter and the stock was trending down more than 4.2% in the morning session. Jim Cramer and ‘Squawk Box’ team on CNBC talked about the stock and the lackluster earnings, which also revealed analysts being “dead wrong” on the stock with their recommendations just a few days before the earnings were released.

Macy's, Inc. (NYSE:M)

Macy’s, Inc. (NYSE:M) reported second-quarter net income of $292 million or $0.80 a share. That was better than $281 million or $0.72 a share that was there in the same quarter in the prior year. However, the bottom line missed the consensus estimate of $0.86 a share for the quarter. The company went on to report revenue of $6.27 billion, which was up 3.3% from $6.07 billion in the second quarter of 2013. However, the increase in revenue was not good enough to match expectations at $6.29 billion.

Macy’s, Inc. (NYSE:M)’s second-quarter figures did come as a surprise, because Cramer pointed out that at least three firms upgraded their targets on the stock just about 10 days before the earnings. He said they were “obviously mistaken” given what came out from the company’s own report.

“[...] The stock should not have been hiked as much as it did, be careful; those guys got it dead wrong,” said Cramer.

In the troubled quarter, Macy’s, Inc. (NYSE:M) pointed out that a choppy economy that has hurt spending, forced them to try to win customers through discounts and promotional events, which eventually impacted their bottom line.

As to whether there are challenges in the market, Cramer said he felt things should be better by now.

“[...] It is a difficult world because we have food prices coming down, we have natural gas prices have gone down – that is electric bill, and we have gasoline going down. So it should be a better time. I want to wait and see what JC Penny says on Friday [...],” he said.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!