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Key Takeaways
- Nike is slated to report fiscal first-quarter earnings after the bell Tuesday. Analysts expect year-over-year declines on both the top and bottom lines.
- The consensus price target for Nike is nearly identical to its Friday closing price, meaning there’s little perceived upside potential.
- Nike’s stock is down roughly 20% so far this year.
Nike (NKE) will report fiscal first-quarter earnings after the bell Tuesday, and analysts are projecting sales and profits to decline year-over-year—but calling for little upside to the stock.
The consensus price target for the sports apparel company is $89.65, according to Visible Alpha, less than 2% above Monday’s close.
Of the 20 firms surveyed with current ratings, nine have Nike as a “buy” rating, according to Visible Alpha. Another nine have it as a “hold,” and two have posted a “sell” rating.
Net income is projected to fall by nearly half year-over-year to about $775 million, down from $1.45 billion a year ago. The company is expected to report higher expenses due to increased advertising during the Olympics, which took place during the quarter, and a focus on developing new products.
The case for the upside, according to Deutsche Bank analysts, is that this quarter should be the bottom for Nike’s sales decline before a recovery, particularly as it transitions to a new CEO in October. Here’s what you need to know ahead of Nike’s earnings report.
Nike’s shares are down roughly 20% this year.