*Nike (NYSE: NKE) is scheduled to announce Q4 earnings results on Thursday, June 25th, after market close.
*The consensus EPS Estimate is $0.04 (-93.5% Y/Y) and the consensus Revenue Estimate is $7.29B (-28.4% Y/Y).
*Over the last 2 years, NKE has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time.
*Over the last 3 months, EPS estimates have seen 5 upward revisions and 16 downward. Revenue estimates have seen 4 upward revisions and 19 downward.
Nike
stock hasn’t seen as big a boost from the coronavirus pandemic as some of its
peers, but investors are hoping a big fiscal fourth quarter will be enough to
help the athletic-product retailer’s shares play some catch-up. It is scheduled
to report fourth-quarter earnings after the close on Thursday.
Nike
shares are down about 2.5% year to date, which is better than the S&P 500
and many other retailers. But it is nowhere near the white-hot growth of other
health-focused consumer names, including Lululemon Athletica (LULU) and Peloton
(PTON). That said, analysts have been racing to raise their price targets in
advance of the report.
That
isn’t to say it will be all smooth sailing. Analysts have warned that, like
many other retailers, Nike faced headwinds from the pandemic, that could show
up in the quarter.
Many
argue that the benefits, especially long term, outweigh the risks. Bulls have
been quick to point out that the company’s products fit well with consumers’
renewed focus on health and wellness, as well as shoppers’ willingness to spend
money, despite economic uncertainty and high unemployment.
Nike
is positioned well because, even before the pandemic struck, it had been
investing heavily in online sales and ramping up efforts to reach consumers
directly, rather than leaning on retail partners.
The
company reported a better-than-expected fiscal third quarter, and many argue
that it will be an overall retail winner when the worst of the pandemic passes.
Analysts
are expecting the company to report earnings of a nickel a share in the fourth
quarter, on revenue of $7.29 billion. More than 80% of analysts rate the stock
Buy or the equivalent. There are no bearish calls on the Street.
Notably,
the company retained its positive earnings track record, with earnings and
sales beat in third-quarter fiscal 2020. The NIKE Direct business displayed
strength backed by more than 30% digital revenue growth across all geographies
and Converse.
Nevertheless,
the effects of store closures in China due to the outbreak hurt Greater China’s
revenues in third-quarter fiscal 2020. This resulted in a lower sales mix in
Greater China, which is its high margin geography, causing gross margin decline
in the quarter. Further, the company expects soft results in the fiscal fourth
quarter due to store closures.
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use.
Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.
