Nordstrom Inc (JWN) shares are trading lower by 2.49% to $21.13 on Tuesday morning. Investors are eagerly anticipating the company’s second-quarter earnings report, scheduled for release after the market closes on Tuesday. Analyst consensus estimates project Nordstrom to report earnings per share (EPS) of 71 cents on revenue of $3.896 billion.
The company’s recent performance provides a mixed picture. In May, Nordstrom reported a wider-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, representing a 5.1% increase in net sales compared to the previous year. Nordstrom Rack, the company’s off-price retail chain, performed particularly well during the first quarter, with a 13.8% increase in net sales. Despite the positive sales growth, CEO Erik Nordstrom acknowledged that profitability fell below expectations. In May, the company reaffirmed its fiscal year 2024 earnings outlook, projecting earnings per share between $1.65 and $2.05.
Is JWN a Good Stock to Buy?
When deciding whether to buy a stock, investors consider various factors beyond just valuation metrics and price action. Two key factors are dividend payouts and stock buyback programs, both of which can impact shareholder value.
Nordstrom (JWN) does pay a dividend, currently yielding 3.96% per year based on the closing price on August 27, 2024. This means that for every share owned, investors receive a dividend payment that represents 3.96% of the share’s value. For those seeking income from their investments, a dividend-paying stock like Nordstrom can be attractive.
Buyback programs, where companies repurchase their own shares, can also be a significant factor. This can boost share prices by reducing the number of shares outstanding, leading to a higher earnings per share. Investors can typically find information about a company’s buyback programs in recent news reports or regulatory filings.
Nordstrom’s recent stock performance reveals a 52-week high of $24.03 and a 52-week low of $12.88. As the company prepares to release its earnings report, investors will be closely watching to see if the company’s performance aligns with expectations and if any new developments regarding dividends or buyback programs are announced.
