Nike to report earnings on March 22

What's Happening With NKE View more about NKE >

Athletic apparel and accessories Nike (NKE) trended lower after a second-quarter revenue miss, but the stock is once again trending higher, and is currently break-even for the year. The company reports fiscal Q3 results after the market close March 22, with analysts expecting earnings of $0.48 per share.

Technical Analysis

NKE was recently trading at $62.48, down $5.71 from its 12-month high and $15.23 above its 12-month low. Technical indicators for NKE are neutral and the stock is in a weak upward trend. The stock has recent support above $59.15 and is trading above recent resistance. Of the 25 analysts who cover the stock, 19 rate it a “strong buy”, one rates it a “buy”, four rate it a “hold”, and one rates it a “strong sell”. The stock receives S&P Capital IQ’s 4 STARS “Buy” ranking.

Analysts' Thoughts

Nike has a solid earnings track record. The company has not missed its quarterly earnings estimate since June 2012, but revenue will remain a problem given the impact of the strong dollar on its international business. The good news for the company is that Wall Street already factored in last quarter’s revenue miss, and has braced itself for another challenging quarter for revenue. Nike has been a top performer over recent years, and Wall Street analysts remain very bullish on the stock. The valuation remains OK, with a P/E of 30.6, and forecast earnings growth of 16.2% this year and 15.3% next year. I expect a solid quarter, and for the stock to build on its recent momentum.

About Nike Inc.

Nike is the largest athletic footwear and apparel brand in the world. It designs, develops, and markets athletic apparel, footwear, equipment, and accessories in six major categories: running, basketball, soccer, training, sportswear, and Jordan Brand. Footwear generates about two thirds of its sales. Nike's brands include Nike, Jordan, Converse (casual footwear), and Hurley (action sports). Nike sells products worldwide and outsources its production to more than 400 factories in more than 40 countries. Nike was founded in 1964 is based in Beaverton, Oregon.

  • Last Price:
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  • Change:
    $-0.35 (-0.40%)
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  • Market Capitalization:
    $136.8 B
  • Day's Range:
    $87.30 - $88.79
  • Dividend Yield:
  • 52-week Range:
    $90 - $66.53
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  • Sector:
    Consumer Cyclical
  • Industry:
    Footwear & Accessories
  • Analyst Average Recommendation:
    Moderate Buy

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