Department store giant Nordstrom (NYSE:JWN) is celebrating today after an optimistic earnings call on Tuesday. Indeed, JWN stock is up 37% so far today after beating investor expectations across the board. Nordstrom also wooed investors with expectations of strong future performance heading further into 2022.
So, what should investors know about Nordstrom earnings and JWN stock?
Well, Nordstrom handily beat Wall Street estimates in both revenue growth and profit. The department store chain reported revenue growth between 5% and 7%, compared to estimates of 3.7% growth. Nordstrom also announced earnings per share (EPS) of $1.23, beating the $1.02 expected EPS. For fiscal 2022, Nordstrom maintains a bright outlook. The company predicts EPS between $3.15 and $3.50 to close the year, easily surpassing EPS estimates of $2.01.
Nordstrom also offered insight into its off-price counterpart, Nordstrom Rack. While Rack sales improved from last quarter, they’re still down 5% from 2019. However, this was seemingly of little importance to investors, who jumped on JWN following its earnings call.
Nordstrom stock has been on something of a rollercoaster ride the past few years. Since dropping alongside the greater market in early 2020, the retailer has seen strong gains tempered by brutal pullbacks.
Let’s see what the experts think about Nordstrom’s latest jump.
3 Analysts Weigh In on JWN Stock
BMO Capital analyst Simeon Siegel was somewhat convinced by Nordstrom’s earnings call. Siegel raised the price target on JWN to $30 per share from $23, though without adjusting his prior “market perform” rating.
Credit Suisse analyst Michael Binetti had a similar story for Nordstrom. Binetti raised the price target from $26 per share to $29. Credit Suisse gave JWN a “neutral” rating.
Finally, the 11-analyst panel at TipRanks believes Nordstrom is a “hold.” Nine analysts recommend to hold, while just one analyst rates the stock a buy and one more recommends it as a sell. The analysts set an average 12-month price target of $28.11, representing roughly 5% upside.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
