Nike Inc (NKE)

[DiscoverGold]

Earnings Preview: Nike Inc. (NYSE: NKE)
By: 24/7 Wall St. | September 27, 2023

• Here is a look at three companies set to release results late Wednesday or early Thursday.

Nike

Over the past 12 months, shares of athletic gear maker Nike Inc. (NYSE: NKE) have fallen by about 6%, including a decline of about 23% so far in 2023. The Dow Jones industrial average component needs to show significant recovery in China and some long-anticipated brand strength. The company’s own forecasts call for growth, even if only modestly, in the first quarter of the new fiscal year. Nike reports results later on Thursday.

Of 36 brokerages covering the stock, 23 have a Buy or Strong Buy rating. Ten more have Hold ratings. At a price of around $90.00 a share, the upside potential based on a median price target of $125.00 is about 39%. At the high price target of around $152.00, the implied upside is almost 69%.

For the company’s first quarter of fiscal 2024, revenue is expected to come in at $13 billion, up 1.4% sequentially and 2.4% higher year over year. Adjusted EPS are forecast at $0.76, up 14.9% sequentially and by 10.6% year over year. For the full fiscal year ending next May, estimates call for EPS of $3.68, up 13.9%, on sales of $53.45 billion, up about 4.4%.

Nike stock trades at 24.6 times expected 2024 EPS, 21.0 times estimated 2025 earnings of $4.30 and 18.2 times estimated 2026 earnings of $4.97 per share. The 52-week range is $82.22 to $131.31. Nike pays an annual dividend of $1.36 (yield of 1.51%). Total shareholder return for the past year was negative 4.90%.

Read Full Story »»»

DiscoverGold