Athletic apparel brand Nike (NYSE:NKE) will be reporting earnings tomorrow afternoon. Here's what you need to know.
Last quarter Nike reported revenues of $13.39 billion, flat year on year, missing analyst expectations by 0.3%. It was a strong quarter for the company, with a solid beat of analysts' operating margin and EPS estimates.
Is Nike buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Nike's revenue to decline 0.8% year on year to $12.29 billion, a further deceleration on the 14% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.75 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing seven downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.
With Nike being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for consumer discretionary stocks, but investors in the segment have had steady hands going into the earnings, with the stocks down on average 0.9% over the last month. Nike is down 3.3% during the same time, and is heading into the earnings with analyst price target of $120.1, compared to share price of $99.9.
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