The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Nordstrom met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins grew across the board.
Nordstrom booked revenue of $2.71 billion. The 11 analysts polled by S&P Capital IQ expected a top line of $2.72 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $2.48 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.71. The 24 earnings estimates compiled by S&P Capital IQ forecast $0.72 per share. GAAP EPS of $0.71 for Q3 were 20% higher than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.8%, 10 basis points better than the prior-year quarter. Operating margin was 9.9%, 20 basis points better than the prior-year quarter. Net margin was 5.2%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.65 billion. On the bottom line, the average EPS estimate is $1.33.
Next year's average estimate for revenue is $11.86 billion. The average EPS estimate is $3.50.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 507 members out of 650 rating the stock outperform, and 143 members rating it underperform. Among 196 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 172 give Nordstrom a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nordstrom is outperform, with an average price target of $60.64.
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