Athletic apparel brand Nike (NYSE: NKE) will be reporting results this Tuesday after the bell. Here’s what to look for.
Nike beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $11.1 billion, down 12% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ constant currency revenue estimates and a solid beat of analysts’ EBITDA estimates.
Is Nike a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Nike’s revenue to decline 5% year on year to $11 billion, improving from the 10.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nike has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Nike’s peers in the consumer discretionary segment, only Scholastic has reported results so far. It missed analysts’ revenue estimates by 5.6%, posting year-on-year sales declines of 4.9%. The stock was down 12.4% on the results.
Read our full analysis of Scholastic’s earnings results here.Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Nike is down 6.7% during the same time and is heading into earnings with an average analyst price target of $79.57 (compared to the current share price of $69.31).
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