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Stock Market & Financial Investment News

News Breaks
May 16, 2014
10:55 EDTJWN, JCP, MNordstrom beats on top-line in Q1, seeks partner for credit card receivables
Shares of specialty retailer Nordstrom (JWN) are up almost 11% this morning after the company reported first quarter earnings per share that exceeded expectations and said it will seek a partner for credit card receivables. WHAT'S NEW: Last night, Nordstrom reported Q1 earnings per share of 72c and revenue of $2.84B, which compare to analystsí consensus estimates of 68c and $2.86B, respectively. For the quarter, same store sales declined 1.9% and direct net sales increased 33% on top of last year's Q1 increase of 25%. The company backed its fiscal year 2014 guidance for EPS of $3.75-$3.90, revenue growth of 5.5%-7.5% and SSS growth of 2%-4%. The consensus forecast of analysts for FY14 EPS prior to the report was $3.85. WHAT'S NOTABLE: Nordstrom also announced that it will seek a financial partner for its Nordstrom credit card receivables, which totals approximately $2B. The retailer aims to maintain its customer focus "while gaining greater financial flexibility" through such a transaction, the company said. A partnership would have a minimal impact on existing operations and jobs, Nordstrom said. The company has hired Goldman Sachs and Guggeinheim as financial advisors in this process. ANALYST REACTION: This morning, shares were upgraded to Outperform from Neutral at Credit Suisse, and the firm believes the credit card receivables transaction will help earnings accelerate in 2016. Buckingham raised its price target on the stock to $70 from $62, and thinks a credit card receivables deal could be 50c-60c accretive to EPS. RBC also raised its price target on Nordstrom, to $75 from $67, and believes trends SSS will continue to improve. PRICE ACTION: Nordstrom is trading up $6.69, or 10.88%, to $68.18 in mid-morning trading. OTHER RETAILERS TO WATCH: J.C. Penney (JCP) is up just over 16% to $9.71 after reporting better than expected Q1 revenue with SSS rising 6.2%. Macy's (M) is trading up almost 1% to $57.48.
News For JWN;JCP;M From The Last 14 Days
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October 29, 2014
10:31 EDTJWNNordstrom to close Mall of Georgia store in Buford Georgia
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October 28, 2014
11:38 EDTJCPKohl's sinks after profit, sales growth outlook misses expectations
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07:13 EDTMMacy's, Bloomingdale's stores to open in Abu Dhabi in 2018
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October 27, 2014
09:37 EDTMActive equity options trading on open
Active equity options trading on open according to Track Data: AAPL PBR TWTR AMZN M NQ GILD C FB NFLX
October 24, 2014
10:29 EDTJCPOptions with decreasing implied volatility
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October 23, 2014
08:41 EDTMBuild-A-Bear partners with Macy's to open shop-in-shop locations for holidays
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October 22, 2014
09:50 EDTJWNCredit Suisse to hold a field trip
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October 17, 2014
16:55 EDTJCPStocks end volatile week lower amid oil price plunge
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