Macy’s Swings to Q1 Profit, Matching View (M)

Filed in dividend, Gold, Gold Investing, Gold Investment, shares by on May 12, 2010 0 Comments

Department store operator Macy’s, Inc. ( M ) said Wednesday that it returned to profit in the first quarter, as higher sales and lower costs added to its bottom line. The New York-based company reported first quarter net income of $23 million, or 5 cents per share, compared with a loss of $88 million, or 21 cents per share, in the year-ago period. Sales rose 7% from last year, to $5.57 billion. On average, Wall Street analysts expected a matching profit of 5 cents per share, on slightly smaller revenue of $5.54 billion. Looking ahead, the company said it would be “premature” to boost its full-year forecast, given the uncertain economic climate. Macy’s shares fell 16 cents, or -0.7%, in premarket trading Wednesday. The Bottom Line We had removed shares of Macy’s from our “recommended” list back in September of 2008, when the stock was trading at $20.17. The company has a dividend yield of .84%, based on last night’s closing stock price of 23.90. The stock has technical support in the $20 price area. If the shares can firm up, we see overhead resistance around the $25-$28 price levels. We would remain on the sidelines for now. Macy’s, Inc. ( M ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Macy’s Swings to Q1 Profit, Matching View (M)

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