Nike Inc. (NKE) shares are trading in the spotlight on Tuesday, ahead of its fiscal first-quarter earnings report, which is expected to be released after the closing bell. Investors are keen to see how the athletic footwear and apparel giant performs following a period of mixed results and a recent CEO transition.
Analysts are anticipating Nike to report earnings of 52 cents per share and revenue of $11.646 billion, according to estimates from Benzinga Pro. While this is a significant decrease from the previous quarter’s performance, where Nike reported revenue of $12.6 billion against estimates of $12.9 billion and adjusted earnings of $1.01 per share against estimates of 85 cents per share, the company has seen a recent surge in its stock price.
This upward trend began after Bill Ackman’s Pershing Square disclosed a new stake in Nike, followed by the announcement of a CEO transition last month. John Donahoe, Nike’s current president and CEO, is set to retire on October 13, with longtime Nike veteran Elliott Hill stepping in to take over on October 14.
Analysts have reacted positively to the CEO change, with several providing updates and reiterating their ratings. Telsey Advisory Group maintained an Outperform rating with a price target of $100, JPMorgan maintained a Neutral rating and price target of $80, BofA Securities reiterated Buy with a price target of $104, Morgan Stanley maintained an Equal-Weight rating and raised its price target to $82, and Truist Securities reiterated Hold with a price target of $85.
Ahead of the earnings report, Jefferies analyst Randal Konik maintained a Hold rating for Nike, but raised the price target from $80 to $85, stating that he believes “investor expectations for F1Q are fairly low, as foot/web traffic data has remained soft and competitors continue to gain share.”
Despite the challenges and low expectations, Nike’s stock has continued to trend upward, hitting 52-week lows in the days following the mixed results from its previous quarter, and recovering since then. As of the time of publication, Nike shares were up 0.72% at $89.02, according to Benzinga Pro.
Investors will be closely watching Nike’s earnings report to gauge the company’s current performance and its outlook for the future. Key factors to consider include revenue growth, profit margins, and the company’s strategies for navigating the challenging economic environment and intense competition in the athletic apparel and footwear market. The report will also offer insights into the impact of the CEO transition and the company’s plans for long-term growth.
