What to Expect When Nike Reports Thursday

By Chris Lange Updated Mar 13, 10:21PM EDT · Published Dec 18, 12:05PM EST

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What to Expect When Nike Reports Thursday — © pexels.com

Nike Inc. (NYSE: NKE | NKE Price Prediction) is scheduled to release its fiscal first-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for $0.58 in earnings per share (EPS) and $10.09 billion in revenue. The same period of last year reportedly had $0.52 in EPS and $9.37 billion in revenue.

There are times in the markets when none of the traditional cautions seem to matter. Some U.S. companies do the bulk of their manufacturing overseas and may face continued tariff woes in 2020, and many U.S. companies have significant exposure to China and other developing markets where growth has slowed. Just don’t bother thinking any of this matters for Nike. That’s at least the message that Wall Street has been sending to Main Street.

On top of Nike ditching its online sales effort through Amazon.com, John Donahoe is set to take over as Nike’s new president and chief executive officer in January. Donahoe will take the reins from Mark Parker, who has been there since 2006, and Parker will become board chair and continue to lead the board of directors. While Donahoe has been on Nike’s board since 2014, he has more than a decade of experience with digital, software and commerce after having run ServiceNow.

Nike also announced a dividend hike in November wherein its payout was raised by 11%. The dividend will be an annualized $0.98 per share, giving it an annualized yield of about 1%.

Excluding Wednesday’s move, Nike had outperformed the broad markets, with the stock up about 34% year to date. In the past 52 weeks, the stock was up about 42.5%.

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Here’s what analysts said about Nike ahead of the report:

Pivotal Research has a Buy rating with a $114 price target.
Needham has a Buy rating with a $105 price target.
Stifel’s Buy rating comes with a $110 target price.
Guggenheim has a Buy rating and a $110 price target.
Credit Suisse has a Buy rating with a $112 price target.
Wedbush rates it as Outperform with a $110 price target.
Morgan Stanley has a Buy rating and a $118 target price.
Merrill Lynch has a Neutral rating and a $105 price target.
UBS’s Neutral rating comes with a $97 price target.

Shares of Nike were trading at $99.76 on Wednesday, in a 52-week range of $66.53 to $100.40. The consensus price target is $104.43.

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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.