Benzinga | May 24, 2021 10:06AM EDT

Earnings Outlook for Nordstrom

Nordstrom (NYSE:JWN) unveils its next round of earnings this Tuesday, May 25. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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

Nordstrom's per-share loss will be near $0.57 on sales of $2.90 billion, according to Wall Street analysts. In the same quarter last year, Nordstrom reported EPS of $2.23 on revenue of $2.03 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 74.44% increase in the company's earnings. Revenue would be up 43.14% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.14 -0.06 -1.48 -0.95EPS Actual 0.21 0.22 -1.62 -2.23Revenue Estimate 3.60 B 3.10 B 2.38 B 2.41 BRevenue Actual 3.65 B 3.09 B 1.78 B 2.03 B

Stock Performance

Shares of Nordstrom were trading at $37.81 as of May 21. Over the last 52-week period, shares are up 125.04%. Given that these returns are generally positive, long-term shareholders should be satisfied 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.