Benzinga | Mar 1, 2021 10:19AM EST

Earnings Outlook For Nordstrom

On Tuesday, March 02, Nordstrom (NYSE:JWN) will release its latest earnings report. Benzinga's outlook for Nordstrom is included in the following report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Nordstrom reporting earnings of $0.14 per share on revenue of $3.60 billion. Nordstrom EPS in the same period a year ago totaled $1.42. Revenue was $4.54 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 90.14% decrease for the company. Sales would be down 20.67% from the same quarter last year. Here is how the Nordstrom's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.06 -1.48 -0.95 1.47EPS Actual 0.22 -1.62 -2.23 1.42Revenue Estimate 3.10 B 2.38 B 2.41 B 4.56 BRevenue Actual 3.09 B 1.78 B 2.03 B 4.54 B

Stock Performance

Shares of Nordstrom were trading at $36.41 as of February 26. Over the last 52-week period, shares are up 11.8%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Nordstrom is scheduled to hold the call at 16:45:00 ET and can be accessed here.