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Nike earnings preview:

Nike (NKE) is expected to report revenue of $11.44B and EPS of $0.54 with its FQ3 earnings release on March 21. Wall Street analysts have been incrementally more bullish on Nike (NKE) ahead of the earnings release, including both UBS and Morgan Stanley.

UBS thinks Nike can clear the market’s bar, even with sentiment positive. Nike is said to have strong brand momentum with consumers globally and an improved inventory position. The firm forecasts a $0.05 EPS beat and modestly raise its FY23 outlook. Shares are expected to get an extra boost from a positive initial FY24 outlook from the Oregon-based athletic apparel giant. Morgan Stanley also predicted a narrow EPS beat for Nike on strong performance from the EMEA segment.

Potential North American softness and a highly promotional channel are called out as downside risks. On Seeking Alpha, contributor Colin Tedards said the first thing investors should look at with the Nike numbers is the margin line to see how the company offset the impact of inventory, shipping, logistics and currency headwinds.

Shares of Nike are up 1.38% on a year-to-date basis.