Nike Inc is set to release its second-quarter earnings report on Thursday, December 19. Analysts anticipate a challenging quarter for the global sportswear giant, forecasting a year-over-year decline in both sales and profits. Despite recent efforts to revitalize its strategy, the company continues to face headwinds from reduced consumer interest and strategic missteps.
Is now the time to buy Nike? Access our full analysis report here, it’s free.
Expected Q2 Earning Report of Nike Inc:
For Q2, Wall Street projects a 37% decline in earnings per share (EPS) to $0.64, compared to $1.03 in the same period last year. Revenue is expected to decrease from $13.39 billion in Q2 2024 to $12.14 billion for the November 2024 quarter. The challenging figures reflect ongoing struggles in regaining customer interest and reversing the stock’s prolonged decline, which saw a 36% drop over the past year.
While Nike’s Q1 results earlier this year showed better-than-expected earnings, revenues fell short of expectations.
Stock Target Advisor’s Analysis on Nike Inc:
Stock Target Advisor offers a neutral rating for Nike, underpinned by seven positive signals and six negative signals. Key positives include high market capitalization, superior returns on equity, capital, and assets, as well as strong cash flow metrics. However, the analysis also points out weak risk-adjusted returns, below-median dividend performance, and low earnings and revenue growth compared to sector peers.
The average 12-month analyst target price for Nike is $93.98, reflecting a potential upside from its last closing price of $78.00. While analysts maintain an overall “Buy” rating, the stock’s volatility and underperformance over the past year underscore the need for cautious optimism.
Explore the latest Analyst Ratings to see how experts view Nike’s stock performance and potential!
Key recent developments, such as Nike renewing its contract with the NFL through 2038 and appointing Elliott Hill as CEO, could influence its trajectory in the coming quarters.
Conclusion:
As Nike (NKE) prepares to release its Q2 earnings report, investors remain cautious but hopeful about the company’s future. The management’s renewed focus on product innovation and leadership under Elliott Hill could pave the way for recovery.
However, achieving meaningful growth amidst declining sales and profits will require sustained strategic efforts. The market will closely monitor the earnings release and guidance for signs of a potential turnaround.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
