What to Watch For in Nike Earnings
Nike will report earnings on Thursday after the close of trading. As a reminder, Nike is now a Dow Jones Industrial Average component. But its earnings are unlikely to affect the broader markets.
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Nike Inc. (NYSE: NKE) will report earnings on Thursday after the close of trading. As a reminder, Nike is now a Dow Jones Industrial Average component. The Thomson Reuters consensus estimates call for $0.72 earnings per share (EPS) and $6.7 billion in revenues. Next quarter estimates are $0.81 EPS and $7.52 billion in revenue.
With shares down 0.5% mid-day on Thursday, the stock is down only about $1.50 from its all-time high. Another issue to watch is that $80 has been a hurdle twice in the past four months.
While $80 has been resistance, Nike shares rallied from $70 to $80 in about five weeks. About $77.50 has acted as near-term support, but the 50-day moving average is down at $75.46 and the 200-day moving average is now all the way down at $71.01.
Earlier in 2014, we gave a bull and bear case for Nike in 2014, and the consensus price target from analysts of $81.36 now is not much different from then. Nike shares are not cheap, particularly for a DJIA component, at 22.5 times next year’s earnings expectations, based on 11% earnings growth and almost 9% sales growth.
Nike may move some of the sports and apparel names like Under Armour, but its earnings report generally is considered to be an isolated event. Trading at $78.62, it has a 52-week range of $53.53 to $80.26.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
