NIKE, Inc (NKE) is set to report second-quarter earnings after Thursday's closing bell, and the numbers aren't looking pretty compared to last year. The Beaverton, Oregon-based sneaker and athletic apparel giant is expected to post earnings of just 38 cents per share, down sharply from 78 cents in the same period last year.
On the revenue front, analysts are forecasting $12.22 billion for the quarter, slightly below the $12.35 billion Nike pulled in a year earlier. So we're looking at a business that's facing some pressure on both the top and bottom lines.
In other company news, Nike named Venkatesh Alagirisamy as Chief Operating Officer on December 2, bringing new leadership to operations as the company navigates challenging market conditions.
Nike shares dropped 2.1% on Wednesday, closing at $65.69 ahead of the earnings report.
What Top Analysts Are Saying
Here's how some of the most accurate analysts on Wall Street have been positioning themselves on Nike heading into earnings:
BTIG analyst Robert Drbul maintained a Buy rating on December 12 with a $100 price target. That's considerably above the current trading price, suggesting Drbul sees significant upside potential. This analyst has a 66% accuracy rate.
Telsey Advisory Group analyst Cristina Fernandez kept a Market Perform rating with a $75 price target on December 10. That's a more cautious stance, essentially a hold position. Fernandez has a 61% accuracy rate.
Guggenheim analyst Simeon Siegel initiated coverage on December 10 with a Buy rating and $77 price target. Notably, Siegel has the highest accuracy rate in this group at 70%.
Citigroup analyst Paul Lejuez maintained a Neutral rating but lowered his price target from $74 to $70 on December 9. That downward revision reflects some growing caution. Lejuez has a 66% accuracy rate.
Wells Fargo analyst Ike Boruchow made the most bullish move, upgrading Nike from Equal-Weight to Overweight on November 13 while raising his price target from $60 to $75. Boruchow sports the highest accuracy rate among this group at 72%.
The takeaway? Even among top analysts, there's no clear consensus on where Nike goes from here. Price targets range from $70 to $100, and opinions span from neutral to bullish. Thursday's earnings report should give us a clearer picture of whether the company can meet these expectations or if more pain lies ahead.
