Earnings Preview: Nordstrom, Inc. (JWN)

Nordstrom, Inc. JWN is currently higher on the session by 0.94%, trading at $41.79. The company is scheduled to report earnings today, after the closing bell. • Estimates The Street is looking for Q3 earnings per share of $0.52 on revenue of $2.07 billion. These estimates have risen by $0.03 (+6.12%) over the past 90 days. The Whisper Number for JWN is $0.51. • Guidance The Street is looking for Q4 EPS of $0.95 on revenue of $2.68 billion. The full year 2011 estimates are $2.64 per share on revenue of $9.16 billion; FY 2012 is at $3.03 per share on revenues of $9.70 billion. • Technical Picture JWN has been moving largely sideways for the past year, albeit in large, multi-month moves. As of late, shares have bounced off of the $28.50 level (ceasing five months of declines) and rallied above the 18-day, 50-day, and 200-day moving averages (all of which are up-trending). The $35.00 is now a key support level. • Volatility Both historical volatility and implied volatility have been falling for the past few months, following a spike higher in May. Currently HI is at 34% and IV is at 48%. The front month $42.00 straddle is trading at 64.80%; the December $42.00 straddle is trading at 46.90%. Vol is skewed toward the puts in both months. Nordstrom, Inc. is a fashion specialty retailer. As of March 19, 2010, the company operated 187 stores located in 28 states in the United States. The company operates in four segments: Retail Stores, Direct, Credit and Other. The Retail Stores segment includes its 112 Nordstrom full-line stores, 72 off-price Nordstrom Rack stores, two Jeffrey boutiques, and one clearance store that operates under the name Last Chance.