The 10-second takeaway
For the quarter ended May 4 (Q1), Nordstrom missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.
Gross margins expanded, operating margins contracted, net margins dropped.
Nordstrom recorded revenue of $2.66 billion. The 16 analysts polled by S&P Capital IQ hoped for revenue of $2.74 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.73. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.73 for Q1 were 4.3% higher than the prior-year quarter's $0.70 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 39.1%, 130 basis points better than the prior-year quarter. Operating margin was 10.0%, 40 basis points worse than the prior-year quarter. Net margin was 5.3%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.24 billion. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $12.73 billion. The average EPS estimate is $3.83.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 526 members out of 668 rating the stock outperform, and 142 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 178 give Nordstrom a green thumbs-up, and 20 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 $58.95.
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