Athletic apparel brand Nike (NYSE:NKE) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.
Nike missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $12.61 billion, down 1.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ earnings estimates but a miss of analysts’ constant currency revenue estimates.
Is Nike a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Nike’s revenue to decline 10% year on year to $11.65 billion, a reversal from the 2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.53 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nike has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Nike’s peers in the consumer discretionary segment, only Scholastic has reported results so far. It beat analysts’ revenue estimates by 1.6%, delivering year-on-year sales growth of 3.8%. The stock traded up 6% on the results.
Read our full analysis of Scholastic’s earnings results here.There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 4.9% on average over the last month. Nike is up 10.1% during the same time and is heading into earnings with an average analyst price target of $92.50 (compared to the current share price of $89.51).
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