Athletic apparel brand Nike (NYSE:NKE) will be reporting earnings this Thursday after market hours. Here’s what to look for.
Nike beat analysts’ revenue expectations by 6.5% last quarter, reporting revenues of $11.72 billion, up 1.1% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.
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This quarter, analysts are expecting Nike’s revenue to decline 1.1% year on year to $12.22 billion, improving from the 7.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 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 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 to get a hint at how this quarter will unravel for consumer discretionary stocks. However, there has been positive investor sentiment in the segment, with share prices up 9.7% on average over the last month. Nike is up 6.6% during the same time and is heading into earnings with an average analyst price target of $83.07 (compared to the current share price of $67.06).
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