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Nike (NKE) earnings: strong future outlook

10:04 am ET, 18 Dec 2018

Nike, Inc. (NKE) shares are trading at $71.83, up 3%.  The company is announcing its quarterly earnings results on Thursday after the market close. What's driving Nike's stock price? What's NKE stock price forecast?

Nike designs, develops, and sells athletic footwear, apparel, and accessories. Recently, a Citi analyst has called Nike as the Best Investment Idea for 2019. The company is benefiting from its direct-to-consumer initiatives and also tailwinds from the World Cup year.

Investors are showing interest in the company as the brand value is still strong among consumers. On the other hand, a few bearish investors worry about the China trade tariffs.  Last quarter’s revenue rose 9.7% to $9.95 billion and earnings per share came at 67 cents compared to 57 cents for the same period last year.

Second-quarter FY19 results will be released after market close on December 20, 2018.  Analysts expect the company to earn 46 cents per share on revenue of $9.17 billion. The company beat analysts’ estimates in the previous four quarters.

What is the sentiment towards the NKE stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Nike, Inc. (NKE) returned -1.04%.

Nike, Inc. (NKE) forward P/E ratio is 23.92, and it’s high compared to its industry peers’ P/E ratios.

Nike, Inc. (NKE) average analyst price target ($87.55) is 17.8% above its current price ($74.32).

For the latest price and information on Nike, Inc., please visit Finstead and search for "NKE price" or "NKE news".

Nike (NKE) stock: trending positive, despite the Kaepernick campaign

1:42 pm ET, 23 Sep 2018

Nike, Inc. (NKE) shares are trading at $85.49.  The company is announcing its quarterly earnings results on Tuesday after the market close. What's driving NKE stock price? What's NKE stock price forecast?

Nike has yielded a return of 58% in 2018. Investment bankers continue to be positive on the stock. Nike’s approach to sponsoring important events has been very fruitful.  Nike Digital is another feather to the cap.

The company has gotten a mixed response to its recently launched Kaepernick campaign. The stock fell immediately after the release of the ad but shot upwards as online sales increased in the next few days. Some investors feel that this campaign should not impact the stock price as the company’s focus is on international markets, while the North American market is cooling off. On the other hand, a portion of investors thinks that the stock could exhibit a downward trend due to boycotts that may occur over a longer-term period.

The next quarter's results will be released after market close on September 25, 2018.  For the upcoming earnings release, analysts expect the company to earn $0.62 per share on revenue of $9.93 billion. The company beat analysts’ estimates in the previous three quarters.

What is the sentiment towards the NKE stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Nike, Inc. (NKE) returned +4.4%.

Nike, Inc. (NKE) forward P/E ratio is 26.67, and it's high compared to its industry peers' P/E ratios.

Nike, Inc. (NKE) average analyst price target ($82.48) is -0.94% below its current price ($83.26).

For the latest price and information on Nike, Inc., please visit Finstead and search for "NKE price" or "NKE news".

Skechers (SKX) earnings preview: expect double-digit sales growth

11:09 am ET, 17 Jul 2018

Skechers U.S.A., Inc. (SKX)  is expected to report earnings on July 19 after market close. The report will be for the fiscal quarter ending June 2018.  Shares are trading at 31.29, up 1.07%.

What are SKX earnings expectations?  What news will the market be watching out for?  

Some investors believe Skechers is undervalued because it deploys a different distribution model relative to its competitors such as Nike, which is primarily focused on e-commerce.  The company realized there is a more effective and profitable model to sell its shoes to consumers--by deploying a traditional direct-to-consumer brick and mortar model.

The company has just over 650 stores, which is up from 584 stores at the end of last year. In addition, Skechers is planning on opening an additional 60 to 75 units by the end of the year. With 133 to 148 new locations this year, Skechers top line should benefit from the sales generated by new stores.

Looking at Nike and Under Armour, each company is trying to drive direct sales in different ways. Nike is investing in its eCommerce business. Nike Direct reported total sales in the last twelve months, of over $10 billion, and grew at an annual basis of 12%. Under Armour is investing heavily in growing its direct to consumer business as well. The company increased its Brand House locations by more than 40% since last year, and its Factory House locations by 15%.

The key difference between the three companies is while Nike and Under Armour get about 30% of their sales from direct to consumer, Skechers gets less than 23%. The reason direct to consumer has become so popular is the business cuts out the middleman, thus increasing the company’s gross margin.

In the upcoming earnings, investors will be focused on the company's growth and profitability.  Skechers' adjusted revenue growth was 21% historically, and for the upcoming quarter sales is expected to grow 10%.   

Skechers gross margin already leads its peers at 46.6%, whereas Nike comes in at 44.6%, and Under Armour sits at 44.2%. However, Skechers' Retail (or direct business) carries a gross margin of 57% as of last quarter.

Skechers has a mixed history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Missed analyst EPS estimates by 6 cents ($.38 actuals vs. $.44 forecast) in FQ2’17;
  • Beat analyst EPS estimates by 16 cents ($.59 actuals vs. $.43 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 8 cents ($.21 actuals vs. $.13 forecast) in FQ4’17;
  • Missed analyst EPS estimates by 6 cents ($.68 actuals vs. $.74 forecast) in FQ1’18.

For FQ2’18, EPS is expected to grow by 5% year-over-year to $.40, while revenue is expected to grow 10% year-over-year to $1.13 billion. 

 

Over the last month, Skechers U.S.A., Inc. (SKX) returned +8.57%. 

Skechers U.S.A., Inc. (SKX) average analyst price target ($42.33) is 35.28% above its current price ($31.29).

For the latest price and information on Skechers U.S.A., Inc., please visit Finstead and search for "SKX price" or "SKX news".

Nike (NKE) earnings: will inventory levels send the stock price down?

1:25 pm ET, 25 Jun 2018

Nike, Inc. (NKE) is reporting earnings on June 28 after market close. The report will be for the fiscal quarter ending May 2018.  The shares are now trading at $72.63, down -1.08%.  What are the NKE earnings expectations?  What news will the market be watching out for?

One of the things that investors are watching out for is Nike's inventory level.  Nike seems to be doing fine on this point; however, what concerns some investors is the fact that the inventory is rising faster than the overall sales, particularly in the footwear business.  Some other companies,  Sketchers (SKX), have inventory levels that are increasing much more slowly than the sales.  

Also, Nike's share of inventory as a percentage of overall revenue is growing.  

Nike has the history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Beat analyst EPS estimates by 11 cents ($.60 actuals vs. $.49 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 9 cents ($.57 actuals vs. $.48 forecast) in FQ1’18;
  • Beat analyst EPS estimates by 7 cents ($.46 actuals vs. $.39 forecast) in FQ2’18;
  • Beat analyst EPS estimates by 16 cents ($.68 actuals vs. $.52 forecast) in FQ3’18.

For FQ4’18, EPS is expected to grow by 7% year-over-year to $.64, while revenue is expected to grow 8% year-over-year to $9.39 billion.  

Nike, Inc. (NKE) forward P/E ratio is 27.77, and it’s high compared to its industry peers’ P/E ratios.

Nike, Inc. (NKE) average analyst price target ($71.73) is -1.24% below its current price ($72.63).

For the latest price and information on Nike, Inc., please visit Finstead and search for "NKE price" or "NKE news".

Nike (NKE): Is It Worth Buying Now?

4:53 pm ET, 22 Mar 2018

Post earnings, Nike (NYSE: NKE) stock popped on good sales results.  

Mark Parker, the CEO, sees a significant reversal of a decline in North America.

In the past two years, the demand for Nike sneakers in North America had waned, which led to gross margin fall for a ninth straight quarter.  This indicated that Nike continued to compete on price with its rivals.

Nike's executive level turbulence is another worry for investors. Last week Nike witnessed its Brand President Trevor Edwards and VP Jayme Martin's resignation after a scandal related to the code of conduct. With the availability of very few details, it is not possible to tell precisely the course of events that caused this. 

Nike's CEO Mark Parker is committed to sticking to his position beyond 2020, which is a positive point for the investors.

Nike is also facing some business challenges stemming from increased selling and administrative expenses, and competitive threats. Nike's rivals such as Adidas and Under Armour (UAA) present a stiff competition.

According to Finstead Research, Nike’s average price target is $68 (roughly the same as the price after-hours today).

Nike’s valuation is fairly high with respect to its peers. It only lags behind CROX.


If you’re a trader, maybe you should wait until you're able to buy a dip again. 

Nike, Inc. (NKE) Stock Guide

Updated at: 9:17 pm ET, 12 Nov 2020

Before we start: if you're looking for NKE stock price, you can quickly find it out by visiting Finny and typing "NKE quote". If you're looking for a quick scoop on NKE stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "NKE". You'll get all this info in one place. Or you can just type "NKE news" to get the latest stock news.

Looking to buy or sell Nike, Inc. (NKE)? Interested in getting the full scoop on NKE, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this NKE stock guide, we'll address key questions about NKE, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are NKE earnings?
2. When is NKE earnings date?
3. What is NKE dividend?
4. What is NKE dividend yield?
5. What is NKE stock forecast (i.e., prediction)?
6. NKE buy or sell? What is NKE Finny Score?
7. What are the reasons to buy NKE? Why should I buy NKE stock?
8. What are the reasons to sell NKE? Why should I sell NKE stock?
9. What are NKE key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are NKE earnings?

NKE trailing 12-month earnings per share (EPS) is $1.69.

2. When is NKE earnings date?

NKE earnings date is December 17, 2020.

3. What is NKE dividend?

NKE forward dividend is $0.98.

4. What is NKE dividend yield?

NKE forward dividend yield is 0.82%.

Analyst Predictions

5. What is NKE stock forecast (i.e., prediction)?

Based on NKE analyst price targets, NKE stock forecast is $145.08 (for a year from now). That means the average analyst price target for NKE stock is $145.08. The prediction is based on 37 analyst estimates.

The low price target for NKE is $85.50, while the high price target is $185.00.

NKE analyst rating is Buy.

Analysis

6. NKE buy or sell? What is NKE Finny Score?

#{finnyScore:42}Our quantitative analysis shows 5 reasons to buy and 7 reasons to sell NKE, resulting in Finny Score of 42.

7. What are the reasons to buy NKE? Why should I buy NKE stock?

Here are the reasons to buy NKE stock:

  • Nike can price its products at a premium due to brand image and innovation. It has been able to continue to raise prices and average price points, with customization offering further opportunities.
  • Nike's span footwear, apparel, and equipment across multiple geographies, channels and sports, mitigating its exposure to any particular category or market.
  • Nike is crucial to major athletic retailers around the globe. Although retailers and Nike call themselves partners, history suggests consumers switch retailers more readily than they will switch brands.
  • NIKE has been a leader in the U.S. footwear and athletic apparel industry. However, retailing is undergoing a sea change with consumers switching to digital shopping. While NIKE sees itself well positioned to gain from the rise in digital era, it remains focused on strengthening its leadership and driving growth through the next phase.
  • NIKE continues to seek opportunities for increasing global footprint, popularity and market share. Apart from acquiring new brands, the company has been focused on broadening its territory through the growth of e-commerce and NIKE Direct business. The enhancement of digital platform has led it to nearly double its revenue contributions from NIKE.com and its apps in just two years, getting over the $2 billion contribution mark.
  • To counter consumer shift toward online shopping, Nike unveiled a new company alignment – the Consumer Direct Offense. Driven by its triple-double strategy, this restructuring plan focuses on using digital methods for rapid innovation and product development, along with strengthening consumer relations by operating through core regions. As part of this plan, the company aims to drive growth by catering to consumers across 12 major cities including New York, London, Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul, and Milan.
  • Nike boasts a strong balance sheet, which offers it the financial flexibility to drive future growth. Further, the company has time and again testified its commitment to enhancing its shareholder value, aided by its strong financial position. Over the last 14 years, the company has distributed regular dividends and made share repurchases to improve shareholder returns.
  • NKE forward dividend yield is 0.82%, higher than the industry (0.74%) and sector (0.46%) forward dividend yields. See NKE forward dividend chart.
  • NKE PEG ratio (P/E adjusted for growth) is 1.70, which is low compared to its industry peers’ PEG ratios. See NKE PEG chart.
  • NKE average analyst rating is Buy. See NKE analyst rating chart.
  • NKE average analyst price target ($145.08) is above its current price ($126.64). See NKE price target chart.
  • NKE cash to debt ratio is 0.73, higher than the average industry (0.22) and sector (0.13) cash to debt ratio. See NKE cash to debt chart.

8. What are the reasons to sell NKE? Why should I sell NKE stock?

Let's look at the reasons to sell NKE stock (i.e., the bear case):

  • The global athletic footwear and apparel market is competitive and strongly correlated to GDP growth. We expect industry growth will mature over a longer horizon.
  • Economic volatility can hurt top- and bottom-line results as more frugal consumers shy away from Nike's more expensive products.
  • Nike's "triple-double" strategy focused on product innovation (better balancing performance and style), supply chain (personalization and speed-to-market enhancements), and direct-to-consumer investments (personalized shopping and mobile app refinements) may take time for consumers to adopt.
  • While NIKE managed to deliver earnings and sales beat in second-quarter fiscal 2018, sales in its key North American market continues to suffer. The company posted a 5% decline in sales for North America in second-quarter fiscal 2018. Its soft sales in North America are attributed to the lackluster product assortments, increased promotions due to growth of e-commerce and intensified competition.
  • Driven by continued softness in North America, NIKE reiterated the previously stated soft outlook for fiscal 2018 and provided third-quarter view. Though the company expects continued strength in international business, it expects near-term results to be hurt by currency headwinds and a promotional retail environment across the United States. For fiscal 2018, reported revenues are anticipated to increase in the mid-single digits.
  • Nike faces intense competition in both domestic and international markets from local as well as established players. The athletic footwear and apparel industry is characterized by rapidly changing customer preferences and technology, which requires continuous innovation in order to stay ahead of trends and competitors. NIKE has been unbeatable in the U.S. footwear segment for long, thanks to the popularity of its namesake and Jordan brands.
  • The company’s footwear products are entirely manufactured outside the U.S. in developing countries such as China, Vietnam, Indonesia and Thailand. Accordingly, the company is exposed to political, social and economic risks associated with the operations in these countries.
  • NKE stock price ($126.64) is close to the 52-week high ($132.35). Perhaps now is a good time to sell? See NKE price chart.
  • NKE quarterly revenue growth was -0.60%, lower than the industry and sector average revenue growth (1.26% and 0.35%, respectively). See NKE revenue growth chart.
  • NKE profitability is declining. The YoY profit margin change was -7.03 percentage points. See NKE profitability chart.
  • NKE forward P/E ratio is 32.54, which is high compared to its industry peers’ P/E ratios. See NKE forward P/E ratio chart.
  • NKE Price/Book ratio is 20.37, which is high compared to its industry peers’ P/B ratios. See NKE forward Price/Book ratio chart.
  • NKE Price/Sales ratio is 5.05, which is high compared to its industry peers’ P/S ratios. See NKE forward Price/Sales ratio chart.
  • NKE Enterprise Value/Revenue multiple is 5.14, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See NKE Enterprise Value/Revenue chart.

Key Stats

9. What are NKE key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for NKE:

Metrics NKE
Price $134.61
Average Price Target / Upside $145.08 / 7.78%
Average Analyst Rating Buy
Forward Dividend Yield 0.76%
Industry Footwear & Accessories
Sector Consumer Cyclical
Number of Employees 73,100
Market Cap $201.38B
Forward P/E Ratio 34.86
Price/Book Ratio 5.39
Revenue (TTM) $37.34B
YoY Quarterly Revenue Growth -0.60%
Profit Margin 7.20%

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