What's Going On With Nordstrom Stock Ahead Of Q2 Earnings?

Nordstrom Inc JWN shares are trading lower by 2.49% to $21.13 Tuesday morning. Traders and investors are anticipating the company’s second-quarter earnings report, confirmed for Tuesday after-hours session. According to analyst consensus estimates, Nordstrom is expected to report EPS of 71 cents on revenue of $3.896 billion.

Nordstrom in May reported a larger-than-expected first-quarter adjusted loss of 24 cents per share, missing the estimate of a 7-cent loss. However, quarterly sales exceeded expectations at $3.22 billion, with a 5.1% increase in net sales compared to the previous year.

Nordstrom Rack performed particularly well in the first quarter, with a 13.8% increase in net sales. Despite the positive sales growth, CEO Erik Nordstrom acknowledged that profitability was below expectations.

The company in May also reaffirmed its fiscal year 2024 earnings outlook, expecting between $1.65 and $2.05 per share.

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Is JWN A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Nordstrom‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Nordstrom JWN does pay a dividend, which yields 3.96% per year as of the closing price on Aug. 27, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 7.9%, you'll need to buy a share of Gabelli Global Utility by the Dec. 13, 2024. Once done, you can expect to receive a nominal payout of $0.1 on Dec. 20, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Nordstrom will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, JWN has a 52-week high of $24.03 and a 52-week low of $12.88.

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