Nike Inc. (NYSE: NKE) is scheduled to release its most recent quarterly results after the markets close on Tuesday. Obviously, coronavirus concerns have weighed heavily on Nike’s stock going into this report. While the results may not entirely reflect the effect of the virus, they will provide some picture of what’s going on with Nike.
Analysts are calling for $0.60 in earnings per share (EPS) and $9.84 billion in revenue for the fiscal third quarter. The same period of last year reportedly had $0.68 in EPS and $9.61 billion in revenue.
In a move to help the spread of COVID-19 in the United States, Nike closed all of its stores in America. It has also closed stores in other parts of the world, joining a laundry list of major retailers that have taken these measures.
Nike also becomes the latest company to risk revenue. It has nearly 400 locations in the United States. Other retail outlets that sell Nike products have not closed yet, but they are bound to. Nike may be left with e-commerce as its primary way to reach customers.
In a very real way, Nike has performed a major public service that is bound to hurt investors, and perhaps part of its employee base.
According to Nike, it has 523 factories globally with 110 factories in China. So this report may shed some light on how Nike is faring in China.
Excluding Monday’s move, Nike stock had performed more or less in line with the S&P 500 and Dow Jones industrial average with shares down about 33% year to date. In the past 52 weeks, they were down closer to 23%.
Here’s what analysts are saying ahead of the report:
- Needham has a Buy rating with an $80 price target.
- Pivotal Research has a Buy rating with a $78 price target.
- Credit Suisse has a Buy rating and an $85 target price.
- Merrill Lynch’s Buy rating comes with an $85 price target.
- Telsey Advisory Group has an Outperform rating.
- Wedbush rates it as Outperform with a $91 price target.
- Wells Fargo has an Equal Weight rating and an $87 price target.
Nike stock traded down about 4% on Monday at $64.57, in a 52-week range of $62.02 to $66.87. The consensus price target is $100.06.
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