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Nordstrom (JWN) to Post Q3 Earnings: What's in the Cards?

Nordstrom Inc.JWN is slated to report third-quarter fiscal 2015 results on Nov 12. In the last quarter, the company delivered a positive earnings surprise of 3.3%. Let's see how things are shaping up for this announcement.

Factors Influencing this Quarter

Considering the better-than-expected second-quarter results, and reclassifying receivables as "held for sale" related to the pending credit card transaction, together with the share repurchases made in the quarter, Nordstrom raised its guidance for fiscal 2015. The company has been gaining from its customer strategy, leading to growth across channels. Also, Nordstrom's strong brand image and continuous expansion endeavors bode well. However, the company's results were impacted by expenses related to the Trunk Club acquisition and its ongoing expansion in Canada. The same factors are expected to weigh on Nordstrom's earnings for fiscal 2015. Taking into account all the aforementioned factors, we would prefer to wait and see if Nordstrom can manage to impress with its upcoming results.

Earnings Whispers

Our proven model does not conclusively show that Nordstrom is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:

Zacks ESP: Earnings ESP for Nordstrom is currently pegged at -2.78%. This is because the Most Accurate estimate of 70 cents stands below the Zacks Consensus Estimate of 72 cents.

Zacks Rank: Nordstrom's Zacks Rank #3 (Hold) increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks that Warrant a Look

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

The Kroger Co. KR has an Earnings ESP of +2.56% and a Zacks Rank #2 (Buy).

Inter Parfums Inc. IPAR has an Earnings ESP of +15.00% and a Zacks Rank #2.

Campbell Soup Company CPB has an Earnings ESP of +2.63% and a Zacks Rank #3.

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KROGER CO (KR): Free Stock Analysis Report

CAMPBELL SOUP (CPB): Free Stock Analysis Report

NORDSTROM INC (JWN): Free Stock Analysis Report

INTER PARFUMS (IPAR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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