Nike Inc. (NYSE: NKE) is scheduled to report its fiscal second-quarter financial results after the markets close on Tuesday. The consensus estimates call for $0.43 in earnings per share (EPS) and $8.09 billion in revenue. The same period of last year reportedly had EPS of $0.45 and $7.69 billion in revenue.
Nike is no longer the growth stock it once was, although revenue growth is healthy. Recently, it has faced a resurgent Adidas, the second largest company in the category, white-hot Under Armour and China’s Anta Sports Products.
Another drag on Nike shares is the extent to which athlete endorsers are critical to sales. Nike has the grandfather of these in Michael Jordan, but he is years past his basketball career. Nike competitors have tried to flank it in every sport from soccer to basketball. Large endorsement deals can be work in the tens of millions of dollars.
Prior to the release of the earnings report, a few analysts weighed in on Nike:
- Brean Capital reiterated a Hold rating.
- Credit Suisse reiterated a Buy rating with a $60 price target.
- Deutsche Bank has a Buy rating with a $65 price target.
- Piper Jaffray has a Hold rating with a $52 price target.
- D.A. Davidson reiterated a Buy rating with a $66 price target.
- B. Riley reiterated a Neutral rating with a $56 price target.
- Oppenheimer reiterated a Market Perform rating.
- Stifel reiterated a Buy rating with a $68 price target.
- Wedbush reiterated a Neutral rating with a $52 price target.
- Cowen has a Market Perform rating with a $54 price target.
- HSBC has a Buy rating with a $60 price target.
So far in 2016, Nike has been one of the worst performing Dow stocks. It has greatly underperformed the broad markets, with the stock down about 18% year to date.
Shares of Nike were last seen up about 1% at $51.38, with a consensus analyst price target of $62.19 and a 52-week trading range of $49.01 to $68.19.
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