Investing

Earnings Previews: Deere, Dell, HP, Nordstrom

Fourth-quarter fiscal 2021 revenue is forecast to come in at $15.42 billion, up less than 1% sequentially and up 1% year over year. Adjusted EPS are forecast at $0.88, down nearly 12% sequentially but nearly 42% higher year over year. For the full fiscal year, analysts are looking for EPS of $3.73, up 63.7%, on sales of $62.23 billion, up nearly 10%.

HP’s share price to earnings multiple for fiscal 2021 is 8.6. For fiscal 2022, the multiple to estimated EPS of $4.08 is 7.9, and for 2023, it is 7.6 times estimated EPS of $4.76. The stock’s 52-week range is $20.58 to $36.00. HP pays an annual dividend of $1.00 (yield of 3.18%). Total shareholder return for the past year is 61.4%.

Nordstrom

Department store operator Nordstrom Inc. (NYSE: JWN) reports third-quarter results after markets close on Tuesday. Shares have added about 56% over the past 12 months, but that’s only about half the peak gain over that same period.

There’s probably no reason to expect Nordstrom to perform worse than its peers have. From Macy’s to Dillard’s, all have beaten expectations. Nordstrom, however, is the smallest (measured by market cap) and the success of its e-commerce business is likely critical to continuing growth. To that end, last week the company signed a deal with Fanatics to sell that company’s licensed sports gear at a Nordstrom-operated website for which Fanatics will fulfill and ship orders.

Analysts are treating Nordstrom with caution. Of 22 brokerages covering the stock, 12 rate the shares a Hold, while six have Sell or Strong Sell ratings and just four have a Buy or Strong Buy rating. At a share price of around $33.10, the upside potential based on a median price target of $34.50 is 4.2%. At the high price target of $48, the upside potential is 45%.

Third-quarter revenue is forecast at $3.54 billion, down about 3% sequentially and up almost 15% year over year. Adjusted EPS are forecast at $0.56, up 14.7% sequentially and 155% higher year over year. For fiscal 2022, which ends in January, analysts expect Nordstrom to report EPS of $1.51, compared to a loss of $3.17 a year ago, on sales of $14.59 billion, up 36.2% year over year.

Nordstrom’s share price to earnings multiple for fiscal 2022 is 21.8. For fiscal 2023, the multiple to estimated EPS of $2.29 is 14.4, and for 2024, it is 13.3 times estimated EPS of $2.47. The stock’s 52-week range is $22.00 to $46.45. Nordstrom does not pay a dividend. Total shareholder return for the past year is 54.7%.

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