Investing
2 Major Earnings Reports to Look For Before Christmas
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24/7 Wall St. has put together a preview of two major companies that are expected to report their quarterly results this week. This week in particular is a lull in earnings, but these two companies are the biggest and brightest that will be reporting during this time, and one has been leading the Dow Jones Industrial Average (DJIA) for a good part of 2015.
We have included the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each. Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.
Keep in mind that next week is the week of Christmas and that the markets will be closed early on Thursday and all of Friday.
Nike
Nike Inc. (NYSE: NKE) is scheduled to report its fiscal second-quarter financial results on Tuesday. The consensus estimates from Thomson Reuters call for the leader of the DJIA to have $0.86 in earnings per share (EPS) on $7.81 billion in revenue. In the same period of the previous year, Nike posted EPS of $0.74 and revenue of $7.38 billion.
This stock has had an outstanding year so far, still up a sizzling 37%. Nike is a worldwide athletic giant and a top consumer discretionary name. It also has outstanding potential upside from a turnaround in its China business, improvements in gross margins and continued innovation-driven market share gains in both basketball and running footwear. With one of the most recognizable brands in the world, long-term investors may do very well adding shares here despite the big move up in the stock this year.
Nike is benefiting from consumer preferences for “athleisure.” With the company’s extensive product line and recognizable worldwide branding, the stock continues to roll year after year. Nike recently provided an overview of its plans to drive growth in its Nike Brand Direct to Consumer (DTC) operations. Driven by its digital business as well as inline and factory stores, Nike now anticipates achieving $16 billion in revenue by the end of fiscal year 2020. Over the next five years, incremental growth in DTC revenues is expected to be driven by e-commerce sales, which are projected to grow to $7 billion. Nike also expects to drive wholesale growth in the mid-to-high single-digit range over the next five years.
Shares of Nike were trading at $128.46 on Friday’s close, with a consensus analyst price target of $142.54 and a 52-week trading range of $90.69 to $135.30.
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