Will Nordstrom (JWN) Repeat its Dismal Earnings Feat in Q4?
Nordstrom Inc. JWN is slated to report fourth-quarter fiscal 2015 results on Feb 18. Last quarter, the company had delivered a negative earnings surprise of 19.7%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
Nordstrom reported dismal top- and bottom-line results for third-quarter fiscal 2015, mainly impacted by soft sales trends across all networks and merchandise categories. This, along with the adverse impact of the credit card portfolio sale, led the company to lower its outlook for fiscal 2015. Considering the lowered fiscal 2015 guidance, we are not very optimistic about the company’s fourth-quarter results. However, the company has been benefitting from its customer strategy, leading to growth across channels. Also, Nordstrom’s strong brand image and continuous expansion endeavors bode well.
Earnings Whispers
Our proven model does not conclusively show that Nordstrom is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: The Earnings ESP for Nordstrom is currently pegged at 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.22.
Zacks Rank: Nordstrom currently has a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Foot Locker Inc. FL has an Earnings ESP of +1.79% and a Zacks Rank #2 (Buy).
Lowe’s Companies Inc. LOW has an Earnings ESP of +1.70% and a Zacks Rank #3 (Hold).
Avis Budget Group Inc. CAR has an Earnings ESP of +15.00% and a Zacks Rank #3.
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AVIS BUDGET GRP (CAR): Free Stock Analysis Report
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NORDSTROM INC (JWN): Free Stock Analysis Report
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