Zacks: Analysts Anticipate Nordstrom, Inc. (JWN) Will Post Earnings of $0.63 Per Share

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Wall Street brokerages expect Nordstrom, Inc. (NYSE:JWN) to post earnings per share of $0.63 for the current quarter, according to Zacks Investment Research. Seven analysts have issued estimates for Nordstrom’s earnings. The highest EPS estimate is $0.72 and the lowest is $0.56. Nordstrom reported earnings of $0.67 per share in the same quarter last year, which indicates a negative year-over-year growth rate of 6%. The firm is scheduled to announce its next quarterly earnings report on Thursday, November 8th.

According to Zacks, analysts expect that Nordstrom will report full year earnings of $3.57 per share for the current year, with EPS estimates ranging from $3.44 to $3.65. For the next year, analysts expect that the company will post earnings of $3.70 per share, with EPS estimates ranging from $3.50 to $3.93. Zacks Investment Research’s EPS averages are a mean average based on a survey of sell-side analysts that follow Nordstrom.

Nordstrom (NYSE:JWN) last posted its quarterly earnings data on Thursday, August 16th. The specialty retailer reported $0.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.84 by $0.11. Nordstrom had a return on equity of 56.00% and a net margin of 3.24%. The business had revenue of $3.98 billion for the quarter, compared to analysts’ expectations of $3.96 billion. During the same quarter last year, the firm earned $0.65 earnings per share. The business’s revenue was up 7.1% on a year-over-year basis.

A number of research analysts recently weighed in on the company. ValuEngine upgraded Nordstrom from a “hold” rating to a “buy” rating in a report on Tuesday. Goldman Sachs Group reiterated a “sell” rating on shares of Nordstrom in a report on Tuesday. Piper Jaffray Companies reissued a “hold” rating and issued a $49.00 price objective on shares of Nordstrom in a research report on Friday, August 17th. Cowen reissued a “hold” rating and issued a $56.00 price objective on shares of Nordstrom in a research report on Friday, August 17th. Finally, Deutsche Bank lifted their target price on Nordstrom from $56.00 to $61.00 and gave the stock a “buy” rating in a research report on Friday, August 17th. Three analysts have rated the stock with a sell rating, fifteen have given a hold rating and six have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $55.68.

In other Nordstrom news, VP Robert Sari sold 7,671 shares of the business’s stock in a transaction on Friday, August 17th. The shares were sold at an average price of $55.65, for a total transaction of $426,891.15. Following the sale, the vice president now directly owns 25,178 shares of the company’s stock, valued at approximately $1,401,155.70. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Erik B. Nordstrom sold 3,379 shares of the business’s stock in a transaction on Monday, June 11th. The shares were sold at an average price of $53.00, for a total transaction of $179,087.00. The disclosure for this sale can be found here. Insiders sold 169,965 shares of company stock worth $9,041,922 in the last ninety days. 7.05% of the stock is owned by corporate insiders.

A number of large investors have recently made changes to their positions in the business. BlackRock Inc. raised its stake in Nordstrom by 7.1% during the 2nd quarter. BlackRock Inc. now owns 8,931,836 shares of the specialty retailer’s stock valued at $462,490,000 after purchasing an additional 592,278 shares during the period. Schwab Charles Investment Management Inc. raised its stake in Nordstrom by 3.7% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 1,032,291 shares of the specialty retailer’s stock valued at $53,453,000 after purchasing an additional 37,057 shares during the period. Schroder Investment Management Group raised its stake in Nordstrom by 39.9% during the 2nd quarter. Schroder Investment Management Group now owns 999,303 shares of the specialty retailer’s stock valued at $52,344,000 after purchasing an additional 285,008 shares during the period. Bank of Montreal Can acquired a new stake in Nordstrom during the 2nd quarter valued at $50,353,000. Finally, Millennium Management LLC raised its stake in Nordstrom by 199.1% during the 2nd quarter. Millennium Management LLC now owns 945,422 shares of the specialty retailer’s stock valued at $48,954,000 after purchasing an additional 629,307 shares during the period. 55.36% of the stock is currently owned by institutional investors.

Nordstrom stock traded down $0.11 during midday trading on Friday, reaching $64.91. The stock had a trading volume of 261,891 shares, compared to its average volume of 3,874,004. Nordstrom has a twelve month low of $37.79 and a twelve month high of $65.06. The stock has a market capitalization of $10.52 billion, a P/E ratio of 21.97, a PEG ratio of 2.94 and a beta of 0.85. The company has a current ratio of 1.10, a quick ratio of 0.54 and a debt-to-equity ratio of 2.35.

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 19th. Shareholders of record on Tuesday, September 4th will be given a $0.37 dividend. The ex-dividend date is Friday, August 31st. This represents a $1.48 dividend on an annualized basis and a yield of 2.28%. Nordstrom’s dividend payout ratio (DPR) is 50.00%.

Nordstrom declared that its board has initiated a stock buyback plan on Wednesday, August 22nd that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the specialty retailer to reacquire up to 14.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

About Nordstrom

Nordstrom, Inc, a fashion retailer, provides apparel, shoes, cosmetics, and accessories for women, men, young adults, and children in the United States and Canada. The company operates in two segments, Retail and Credit. The Retail segment offers a range of brand name and private label merchandise through various channels, including Nordstrom branded full-line stores and online store at Nordstrom.com; Nordstrom Rack stores; Nordstromrack.com and HauteLook; Trunk Club clubhouses and TrunkClub.com; Jeffrey boutiques; and clearance stores that operate under the Last Chance name.

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