Nike NKE reports its first quarter for fiscal 2023 after the bell on Thursday. Zacks expects it to report earnings of $0.91/share and revenue of $12.27 billion. Several analysts cut their price targets ahead of the report, including Deutsche Bank trimming to $123 and Jefferies to $130 – but both maintained a buy rating and the stock is currently trading around $96.
Shares of the company have fallen over 30% year-to-date and hit a two-year low on Monday. As an international company, Nike is affected by the strong U.S. dollar. China’s lockdowns are also impacting Nike: Greater China revenues fell almost 20% last quarter, and factory closures are squeezing supply.
Despite this, Nike forecasts fiscal 2023 revenue rising in the low double-digits. It is also seeing strength in digital sales, which rose around 18% in fiscal 2022. Direct-to-consumer made up 42% of total sales in 2022 as well, showing strong brand loyalty from consumers and decreased reliance on retail partners – a boon for margins during lockdowns.
Even if Nike is a strong play for the long-term, as some analysts believe, will the market crush it short-term if its earnings disappoint?
Image sourced from Shutterstock
This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.