What to Expect From Nike Earnings

By Chris Lange Updated Jan 13, 6:17AM EST · Published Jun 28, 8:31AM EDT

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Nike, Inc. (NYSE: NKE) is scheduled to report its fiscal fourth-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for $0.48 in earnings per share (EPS) on $8.28 billion in revenue. The same period from last year had $0.49 in EPS on $7.78 billion in revenue.

This stock was hit hard when a good earnings report came with guidance well below estimates. Nike is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities.

Nike’s is a truly global business, and international markets are very promising for the company. Sales, excluding currency fluctuations, grew 27% in Greater China and 29% in central and eastern Europe during the quarter that ended in February.

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Nike is benefiting from consumer preferences for “athleisure.” With its extensive product line and recognizable worldwide branding, the stock continues to roll year after year. Driven by its digital business as well as inline and factory stores, Nike now anticipates achieving $16 billion in revenue by the end of fiscal year 2020. Over the next five years incremental growth in Nike brand direct-to-consumer (DTC) revenues is expected to be driven by e-commerce sales, which are projected to grow to $7 billion. The company also expects to drive wholesale growth in the mid-to-high single-digit range over the next five years.

A few analysts weighed in on Nike ahead of the earnings report:

Brean Capital has a Buy rating with a $68 price target
Goldman Sachs has a Buy rating with a $67 price target
B. Riley reiterated a Buy rating with a $66 price target
Cowen reiterated a Buy rating
Robert Baird reiterated an Overweight rating with a $70 price target
Merrill Lynch reiterated a Neutral rating with a $60 price target
Susquehanna reiterated a Positive rating with a $74 price target
Telsey Advisory Group has an Outperform rating with a $69 price target
BB&T reiterated a Buy rating with a $70 price target
Buckingham reiterated a Buy rating with a $70 price target
Jefferies reiterated a Buy rating with a $67 price target

So far in 2016 Nike has underperformed the broad markets with the stock down about 15%. However over the past 52-weeks the stock is actually flat.

Shares of Nike closed Monday down 1.3% at $51.89, with a consensus analyst price target of $70.52 and a 52-week trading range of $47.25 to $68.19. In early trading indications Tuesday, the stock is up about 0.8% at $52.32.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.