5 Insightful Analyst Questions From nCino’s Q3 Earnings Call

Macy’s third quarter results met Wall Street’s revenue expectations and outperformed on adjusted profit, reflecting the early momentum of the company’s Bold New Chapter strategy. Management credited better-than-expected same-store sales growth to improvements in curated assortments, store upgrades, and a more seamless omnichannel experience. CEO Tony Spring specifically highlighted strong customer response to the refreshed Reimagine 125 store locations and the continued growth of the luxury-focused Bloomingdale’s and Bluemercury banners.

Is now the time to buy M? Find out in our full research report (it’s free for active Edge members).

Macy's (M) Q3 CY2025 Highlights:

• Revenue: $4.91 billion vs analyst estimates of $4.75 billion (flat year on year, 3.4% beat)
• Adjusted EPS: $0.09 vs analyst estimates of -$0.13 (significant beat)
• Adjusted EBITDA: $281 million vs analyst estimates of $210.5 million (5.7% margin, 33.5% beat)
• The company lifted its revenue guidance for the full year to $21.55 billion at the midpoint from $21.3 billion, a 1.2% increase
• Management raised its full-year Adjusted EPS guidance to $2.10 at the midpoint, a 12% increase
• Operating Margin: 0.9%, in line with the same quarter last year
• Locations: 685 at quarter end, down from 735 in the same quarter last year
• Same-Store Sales rose 2.5% year on year (-2.4% in the same quarter last year)
• Market Capitalization: $5.98 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Macy's’s Q3 Earnings Call

• Matthew Boss (JPMorgan) asked about the traction of reimagined stores and November trends. CEO Tony Spring explained that both traffic and average basket size improved, with continued strength into early Q4.
• Brooke Roach (Goldman Sachs) inquired about sustaining momentum and EBITDA margin prospects. Spring cited product variety and omnichannel balance, while CFO Tom Edwards highlighted ongoing tariff mitigation and disciplined reinvestment.
• Blake Anderson (Jefferies) questioned the behavior of aspirational customers and SG&A savings from store closures. Spring said customer breadth is increasing in Q4, and Edwards noted SG&A leverage from closures but stressed reinvestment for growth.
• Charles Grom (Gordon Haskett) sought clarity on consumer confidence and traffic drivers. Spring responded that guidance reflects a prudent outlook given a more choiceful consumer, while Edwards confirmed positive traffic and average unit retail (AUR) trends.
• Alex Straton (Morgan Stanley) asked about the competitive landscape and gross margin outlook. Spring asserted Macy’s is better positioned than peers, and Edwards attributed Q4 margin pressure mainly to tariffs and promotional flexibility.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch for (1) sustained traffic gains and customer satisfaction in Reimagine 125 and other upgraded stores, (2) measurable improvements in digital sales and fulfillment speed from the China Grove distribution center, and (3) ongoing progress in luxury banners and credit card revenues. Execution on cost containment and inventory discipline will also be critical indicators of Macy’s ability to meet its updated guidance.

Macy's currently trades at $22.53, in line with $22.70 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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Methode Electronics' third quarter was marked by continued operational challenges, with revenue declining notably year over year. Management attributed the sales contraction to ongoing headwinds in automotive and delayed program launches, particularly in the electric vehicle segment. CEO Jonathan DeGaynor highlighted that, “our EV exposure is not just in North America, it's in Europe and Asia,” and stressed the company has already absorbed much of the impact from canceled and delayed launches. The company’s efforts to improve plant performance, especially in Egypt and Mexico, helped deliver sequential improvements, but overall margin pressures persisted.

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Methode Electronics (MEI) Q3 CY2025 Highlights:

• Revenue: $246.9 million vs analyst estimates of $237.7 million (15.6% year-on-year decline, 3.9% beat)
• Adjusted EPS: -$0.19 vs analyst estimates of -$0.20 (in line)
• Adjusted EBITDA: $17.6 million vs analyst estimates of $15.27 million (7.1% margin, 15.2% beat)
• The company reconfirmed its revenue guidance for the full year of $950 million at the midpoint
• EBITDA guidance for the full year is $75 million at the midpoint, above analyst estimates of $73.53 million
• Operating Margin: 1.6%, down from 3.2% in the same quarter last year
• Market Capitalization: $241.5 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Methode Electronics’s Q3 Earnings Call

• Luke Junk (Baird) asked about the relative trends in data center versus EV sales and how Power Solutions results break down. CEO Jonathan DeGaynor clarified data center revenues are performing in line with expectations and EV headwinds have already been absorbed.
• Luke Junk (Baird) questioned whether the second half improvement will be driven by margins or volume. DeGaynor and CFO Laura Kowalchik explained that increased plant efficiency and margin conversion, especially in Egypt and Mexico, are key drivers for the expected improvement.
• John Franzreb (Sidoti & Company) pressed on whether management is comfortable with the lower or upper end of guidance, given ongoing volatility. DeGaynor noted continued caution, citing external risks like tariffs and supply chain turbulence as reasons for maintaining a wide guidance range.
• John Franzreb (Sidoti & Company) inquired about the drivers behind sequential improvements in industrial operating profit. DeGaynor attributed gains to improved plant performance and cost control, not just data center sales.
• Gary Prestopino (Barrington Research) asked for details on upcoming program launches and segment exposure. DeGaynor confirmed most new launches are power-related, covering both EV and hybrid applications, and are concentrated in Mexico and EMEA.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be closely monitoring (1) the ongoing operational improvements in Egypt and Mexico for sustainable margin expansion, (2) the success of data center Power Solutions and the vendor-managed inventory rollout as a potential growth offset to weaker automotive, and (3) any resolution or escalation of external risks such as tariffs or supply chain disruptions. We will also track the pace and profitability of new program launches across core segments.

Methode Electronics currently trades at $6.80, down from $8.69 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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