Nike (NKE) Q2 Earnings Report Preview: What To Look For

Kayode Omotosho /
2024/06/26 1:18 pm EDT

Athletic apparel brand Nike (NYSE:NKE) will be announcing earnings results tomorrow after market close. Here's what to look for.

Nike beat analysts' revenue expectations by 1.1% last quarter, reporting revenues of $12.43 billion, flat year on year. It was an ok quarter for the company, with a narrow beat of analysts' operating margin 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 be flat year on year at $12.86 billion, slowing from the 4.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.

Nike Total Revenue

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 twice over the last two years.

Looking at Nike's peers in the consumer discretionary segment, only Carnival has reported results so far. It beat analysts' revenue estimates by 1.6%, delivering year-on-year sales growth of 17.7%.

Read our full analysis of Carnival's earnings results here.

Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Nike is up 2.5% during the same time and is heading into earnings with an average analyst price target of $109.4 (compared to the current share price of $94.35).

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