Apparel and footwear company Nike Inc NKE will report fourth-quarter financial results after market close Thursday. Here’s a look at the expectations from analysts and their recent price target changes.
Earnings Expectations: Nike is expected to report fourth-quarter earnings per share of 67 cents, according to data from Benzinga Pro.
The company is expected to report fourth-quarter revenue of $12.59 billion.
Nike reported earnings per share of 99 cents and revenue of $12.23 billion in the fourth quarter of last year.
The company has beat earnings per share expectations for the last 11 straight quarters, with the most recent figure being 79 cents in the third quarter.
Nike has beaten revenue estimates in the last six straight quarters and nine out of the last 11. The company reported $12.39 billion in revenue in the third quarter.
What Analysts Are Saying: Morgan Stanley analyst Alex Straton recently reiterated an Overweight rating and a price target of $130 for Nike.
The analyst says the company is set up to beat a lowered bar for the fourth quarter. With revenue growth in line with past years, the analyst thinks Nike could report 75 cents in earnings per share, beating Street estimates.
The worry for the analyst and the Street is related to the demand for sportswear, which could increase inventory and the outlook for the company going forward.
Concern over China’s growth is also listed by the analyst as a potential issue.
Several analysts have lowered their price targets on Nike stock going into the fourth quarter earnings report.
JP Morgan analyst Matthew Korn lowered the price target from $152 to $146.
Deutsche Bank analyst Gabriella Carbone lowered the price target from $133 to $126.
Wedbush analyst Tom Nikic lowered the price target from $139 to $129.
Another challenge for Nike could be the first-quarter financial results reported by leading footwear retailer Foot Locker FL in May.
Foot Locker reported first-quarter revenue that was down 11.4% year-over-year and missed Street estimates. The company also said comparable same-store sales were down 9.1% year-over-year in the first quarter.
The footwear company also lowered its full-year sales guidance after the first quarter.
While footwear is only one of Nike’s business lines, the weakened demand from a leading retailer and seller of Nike products could signal some weakness.
NKE Price Action: Nike shares are up 1% to $113.56 on Thursday, versus a 52-week trading range of $82.22 to $131.31. Nike shares are down around 5% year-to-date in 2023.
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