Nike Inc. (NYSE: NKE) is scheduled to release its fiscal third-quarter results after the markets close on Thursday. Consensus estimates call for $0.65 in earnings per share (EPS) and $9.61 billion in revenue. EPS of $0.68 and $8.98 billion in revenue were posted in the same period of last year.
In the previous quarter, Nike brand revenues increased 14% to $8.9 billion on a currency neutral basis, while revenues from Converse increased 6% to $425 million.
And during the second quarter, Nike repurchased a total of 16.1 million shares for roughly $1.3 billion as part of its four-year, $12 billion program.
Merrill Lynch is a big bear when it comes to Nike. The brokerage firm has an Underperform rating with a $60 price target, and it said in a recent report:
We expect sales and earnings growth to decelerate on market share pressures and intensifying competition. We see downside to NKE’s current P/E multiple given market share pressure in the U.S. and difficult International comparisons, which offset strong direct-to-consumer momentum and strength in China.
Excluding Wednesday’s move, Nike had outperformed the broad markets, with its stock up 18% year to date. In the past 52 weeks, the stock was up 33%.
A few other analysts weighed in on Nike ahead of the report:
- Goldman Sachs has a Neutral rating and an $85 price target.
- JPMorgan has an Overweight rating with a $90 target price.
- Canaccord Genuity has a Buy rating with a $96 price target.
- Needham has a Buy rating with a $92 price target.
- Credit Suisse has an Outperform rating and a $100 target.
Shares of Nike were last seen down about 1% at $86.49, in a 52-week range of $63.21 to $88.59. The consensus price target is $89.85.
24/7 Wall St.Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
