Federated, May Set to Report 1Q Profit
Monday May 9, 4:06 pm ET
Federated Department Stores Set to Report First-Quarter Profit Ahead of May Takeover
NEW YORK (AP) -- Federated Department Stores shares edged closer to its all-time high Monday as investors moved into the stock ahead of a first-quarter earnings report that is expected to easily beat Wall Street forecasts.
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The Cincinnati-based parent of Macy's and Bloomingdale's -- currently in the midst of acquiring rival May Department Stores Co. -- increased quarterly projections last week after it reported same-store sales grew 2.8 percent in April. The company said it expects to report on Wednesday earnings between 65 cents and 70 cents per share, higher than previous projections of 45 cents to 50 cents per share.
On average, analysts surveyed by Thomson Financial expect earnings of 65 cents per share on revenue of $3.55 billion.
Federated shares have risen 14 percent since it announced on Feb. 28 it would acquire rival May in an $11 billion deal plus assumed debt. The stock -- which rose $1.26, or 2 percent, to $64.44 in afternoon trading on the New York Stock Exchange -- is just off its all-time high of $65.08 hit last month.
May, which operates 490 department stores under names such as Lord & Taylor and Robinsons-May, will report its first-quarter earnings on Tuesday. Analysts expect the company will report profit of 16 cents per share during the period.
Last week, the retailer reported same-store sales rose 1.5 percent in April from the year-ago period. Total sales were $1.08 billion, up 20 percent. May said same-store sales for the entire quarter fell 5.1 percent year-over-year.
May shares moved up 37 cents to $37.29 in afternoon trading on the NYSE, just below its 52-week high of $37.46 set last month.
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