Nordstrom Inc. JWN, upscale department store operator, is slated to post its first quarter 2014 earnings results on May 15, 2014, after the closing bell. In the previous quarter, it reported a positive earnings surprise of nearly 3%. Let's see how things are shaping up for this announcement.
Growth Factors this Quarter
Following the mixed year-end results, reflecting growth across channels along with efficient inventory and expense management, Nordstrom provided its guidance for fiscal 2014, anticipating continued investments for delivering sustainable sales and earnings growth. Though the company envisions sales to grow in the coming quarter, it expects earnings to be affected by the ongoing infrastructure investments and pre-opening costs related to its entry to Canada.
Earnings Whispers?
Our proven model does not conclusively show that Nordstrom is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP (Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zero Zacks ESP: Nordstrom currently has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 67 cents.
Zacks Rank #3 (Hold): Nordstrom's Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult. We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat:
Rite Aid Corporation RAD, Earnings ESP of +14.29% and a Zacks Rank #1 (Strong Buy).
The Kroger Co.KR, Earnings ESP of +0.95% and a Zacks Rank #2 (Buy).
Foot Locker, Inc.FL, Earnings ESP of +1.9% and a Zacks Rank #3.
FOOT LOCKER INC FL: Free Stock Analysis Report
NORDSTROM INC JWN: Free Stock Analysis Report
KROGER CO KR: Free Stock Analysis Report
RITE AID CORP RAD: Free Stock Analysis Report
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