U.S. Markets closed
  • S&P Futures

    3,902.00
    -14.25 (-0.36%)
     
  • Dow Futures

    31,373.00
    -114.00 (-0.36%)
     
  • Nasdaq Futures

    12,101.25
    -39.25 (-0.32%)
     
  • Russell 2000 Futures

    1,754.90
    -6.80 (-0.39%)
     
  • Crude Oil

    106.78
    -0.84 (-0.78%)
     
  • Gold

    1,833.30
    +3.00 (+0.16%)
     
  • Silver

    21.23
    +0.10 (+0.50%)
     
  • EUR/USD

    1.0566
    +0.0008 (+0.0740%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • Vix

    27.23
    -1.82 (-6.27%)
     
  • GBP/USD

    1.2287
    +0.0017 (+0.1413%)
     
  • USD/JPY

    134.6680
    -0.5020 (-0.3714%)
     
  • BTC-USD

    20,992.75
    -510.37 (-2.37%)
     
  • CMC Crypto 200

    458.04
    +4.14 (+0.91%)
     
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • Nikkei 225

    26,706.62
    +214.65 (+0.81%)
     

Here's Why Nordstrom (JWN) is Poised for Q1 Earnings Beat

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·5 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Nordstrom, Inc. JWN is scheduled to release first-quarter fiscal 2022 numbers on May 24, after the closing bell. The fashion specialty retailer is expected to have witnessed revenue and earnings growth in the to-be-reported quarter.

Although the Zacks Consensus Estimate for the fiscal first-quarter bottom line is pegged at a loss of 9 cents per share, it suggests a substantial improvement of 85.9% from the year-ago quarter's reported figure of a loss of 64 cents. Also, the consensus mark has narrowed by a penny in the past 30 days. The consensus mark for revenues is pegged at $3.33 billion, indicating a rise of 10.6% from the figure reported in the year-ago quarter.

In the last reported quarter, the company witnessed an earnings surprise of 18.3%. Also, it delivered an earnings surprise of 13.9%, on average, in the trailing four quarters.

Nordstrom, Inc. Price and EPS Surprise

Nordstrom, Inc. Price and EPS Surprise
Nordstrom, Inc. Price and EPS Surprise

Nordstrom, Inc. price-eps-surprise | Nordstrom, Inc. Quote

Key Factors to Note

Nordstrom has been gaining from the solid demand for apparel and footwear, robust digital growth, and compelling ffmerchandise. Strength in home, active, designer, beauty and kids categories also bodes well. The company has been on track to enhance the performance of Nordstrom Rack and improve inventory.

It has been focused on technology advancement by boosting e-commerce and digital networks, improving its supply-chain channels, and marketing efforts. The digital business has been witnessing gains from improved digital traffic across both Nordstrom and Nordstrom Rack, as well as increased utilization of Buy Online, Pick Up In-Store service. Its mobile app has also been performing well. Alongside these, the integration of Rack.com onto Nordstrom.com should have contributed to the company's top line in the quarter under review.

The company's fiscal first-quarter performance is expected to have benefited from its market strategy, which helps engage with customers through better service and greater access to products, irrespective of the shopping mode. As part of the strategy, Nordstrom expanded services, including order pickup and ship-to-store, to all Nordstrom Rack stores.

JWN has also been focused on the closer-to-you strategy, aiming to link stores and services to expedite deliveries, expand online offerings and add cheaper merchandise to its Rack off-price stores to improve customers' shopping experiences. A rise in new customers, enhanced personalization and expanded product offering are likely to have aided the fiscal first-quarter performance.

However, the company's sales and earnings performances have been short of the pre-pandemic levels. JWN has been reeling under higher COVID-related labor and freight costs. The lack of product availability, order cancellations, shipment delays, higher fulfillment and labor costs have been concerning.

What Does the Zacks Model Say?

Our proven model conclusively predicts an earnings beat for Nordstrom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Nordstrom has an Earnings ESP of +54.29% and a Zacks Rank #2.

Other Stocks With Favorable Combination

Here are some more companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:

Costco Wholesale Corporation COST currently has an Earnings ESP of +1.90% and a Zacks Rank of 2. The Zacks Consensus Estimate for its third-quarter fiscal 2022 earnings moved up 0.7% in the last 30 days to $3.04 per share, indicating a 10.6% increase from the year-ago quarter's reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

However, Costco’s top line is expected to have risen year over year. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $51.76 billion, suggesting growth of 14.3% from that reported in the prior-year quarter. COST has delivered an earnings beat of 13.3%, on average, in the trailing four quarters.

Fastenal FAST currently has an Earnings ESP of +2.82% and a Zacks Rank of 2. The Zacks Consensus Estimate for its second-quarter 2022 earnings has been unchanged at 50 cents per share in the past 30 days, implying 19.1% growth from the year-ago quarter’s reported number.

However, Fastenal’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.78 billion, which suggests a rise of 18.3% from the figure reported in the prior-year quarter. FAST has delivered an earnings beat of 5%, on average, in the trailing four quarters.

Casey’s General Stores CASY currently has an Earnings ESP of +3.73% and a Zacks Rank of 3. The Zacks Consensus Estimate for its fourth-quarter fiscal 2022 earnings has moved north by 2.8% to $1.48 per share in the past 30 days, indicating a 32.1% rise from the year-ago quarter’s reported number.

Casey’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.34 billion, which suggests a rise of 40.4% from the figure reported in the prior-year quarter. CASY has delivered an earnings beat of 21.6%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Fastenal Company (FAST) : Free Stock Analysis Report

Nordstrom, Inc. (JWN) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research