What to Expect When Nike Reports Thursday

Companies and Brands

Published: December 18, 2019 12:05 pm

Last Updated: March 13, 2020 10:21 pm

Nike Inc. (NYSE: NKE) is scheduled to release its fiscal first-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for $0.58 in earnings per share (EPS) and $10.09 billion in revenue. The same period of last year reportedly had $0.52 in EPS and $9.37 billion in revenue.

There are times in the markets when none of the traditional cautions seem to matter. Some U.S. companies do the bulk of their manufacturing overseas and may face continued tariff woes in 2020, and many U.S. companies have significant exposure to China and other developing markets where growth has slowed. Just don’t bother thinking any of this matters for Nike. That’s at least the message that Wall Street has been sending to Main Street.

On top of Nike ditching its online sales effort through Amazon.com, John Donahoe is set to take over as Nike’s new president and chief executive officer in January. Donahoe will take the reins from Mark Parker, who has been there since 2006, and Parker will become board chair and continue to lead the board of directors. While Donahoe has been on Nike’s board since 2014, he has more than a decade of experience with digital, software and commerce after having run ServiceNow.

Nike also announced a dividend hike in November wherein its payout was raised by 11%. The dividend will be an annualized $0.98 per share, giving it an annualized yield of about 1%.

Excluding Wednesday’s move, Nike had outperformed the broad markets, with the stock up about 34% year to date. In the past 52 weeks, the stock was up about 42.5%.

Here’s what analysts said about Nike ahead of the report:

Pivotal Research has a Buy rating with a $114 price target.
Needham has a Buy rating with a $105 price target.
Stifel’s Buy rating comes with a $110 target price.
Guggenheim has a Buy rating and a $110 price target.
Credit Suisse has a Buy rating with a $112 price target.
Wedbush rates it as Outperform with a $110 price target.
Morgan Stanley has a Buy rating and a $118 target price.
Merrill Lynch has a Neutral rating and a $105 price target.
UBS’s Neutral rating comes with a $97 price target.

Shares of Nike were trading at $99.76 on Wednesday, in a 52-week range of $66.53 to $100.40. The consensus price target is $104.43.

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