Earnings Reports

Google Ad

Nike $NKE reports earnings after the close on Thursday, one of the last for 2017.  Nike shares were hurt earlier by the falling popularity of NFL but have since recovered on better than expected  Foot Locker $FL sales. Will Christmas Shopping boost expectations? 

Nike Women Athlete

Earnings expectations for the fiscal second quarter are for  $0.41 in EPS on $8,390 billion in revenue.

There are a few potential positives here for Nike. The obvious is stocks are trading at all time highs, risk concern is at a low, just look at Bitcoin and it's crypto buddies to understand that. Another is weak earnings are expected, analyst aleady expect EPS to fall 18% year-over-year after they were marked down sharply after Q1. Within that revenue is projected to grow just 2.6% year-over-year.

The surprises at Dicks $DKS and Foot Locker $FL combined with holiday season optimism gives Nike a low bar to get over. With regard to the NFL controversy, we are coming into playoffs, protests have fallen off, football gifts are popular and Nike women's apparel is unrelated to football!

The concern is do recent gains already expect a surprise?. $NKE (like almost everything it seems) is near an all-time high. Nike is trading at nearly 28x FY18 consensus, so it needs a little Christmas magic..

$NKE closed Friday at $64.79 and has a 52-week range is $50.35 to $65.07

Live From The Pit

Log in to comment
Discuss this article in the forums (1 replies).