What to Watch for in Nike’s (NKE) Earnings

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Nike, Inc. (NKE) is set to announce fourth quarter fiscal 2016 earnings results after the closing bell Tuesday. Analysts expect the footwear giant to report earnings per share of $0.48, down from $0.49 a year ago, and revenue of $8.28 billion. That would be $0.07 lower the $0.55 per share posted last quarter, and $280 million higher the $8 billion revenue posted in the same period.

For full fiscal year 2016, ending in May, EPS are projected to rise 16% on a yoy-basis to $2.15, while full year revenue is expected at $32.4 billion. That would mark a 6% rise from the year-ago period.

Separately, WSJ’s Miriam Gottfried remains cautious on shares ahead of tomorrow’s earnings, writing “the coming Summer Olympic Games likely won’t be the positive catalyst investors might expect for Nike’s stock.” The 2016 summer Olympic games in Rio kick off in August.

Price Action

Nike shares closed Friday at $52.59, down 2.83%. The name is currently trading at $51.84, 1.43% lower from the prior days close, and down more than 20% since hitting a 52-week high of $67.65 in November. In the past 52 weeks, shares of Beaverton, Oregon-based company have traded between a low of $47.25 and a high of $68.19.

Nike stock – which is part of the Dow Jones Industrial Average – has declined 5.80% in the last 4 weeks and more than 14% in the past three months. Over the past 5 trading sessions the name has lost 2.09%. Shares of the $87.46 billion market cap company are up 1.01% year-over-year ; down 15.39% year-to-date.

Currently, there are 22 analysts that rate NKE a ‘Buy’, 8 rate it a ‘Hold’. No analyst rates it a ‘Sell’. Ticker has an average analyst 12-month price target of $70, implying a rise of 35% from current levels.

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