Earnings and Growth Analysis : Nike (NYSE:NKE)

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Earnings results for Nike (NYSE:NKE)

Nike, Inc. is expected* to report earnings on 09/22/2020 after market close. The report will be for the fiscal Quarter ending Aug 2020. According to Zacks Investment Research, based on 12 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.45. The reported EPS for the same quarter last year was $0.86.

Nike last announced its quarterly earnings data on June 25th, 2020. The footwear maker reported ($0.51) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by $0.53. The company had revenue of $6.31 billion for the quarter, compared to the consensus estimate of $7.26 billion. Its revenue for the quarter was down 38.0% compared to the same quarter last year. Nike has generated $1.85 earnings per share over the last year and currently has a price-to-earnings ratio of 71.8. Nike has confirmed that its next quarterly earnings report will be published on Tuesday, September 22nd, 2020.

Analyst Opinion on Nike (NYSE:NKE)

35 Wall Street analysts have issued ratings and price targets for Nike in the last 12 months. Their average twelve-month price target is $117.04, predicting that the stock has a possible upside of 3.24%. The high price target for NKE is $150.00 and the low price target for NKE is $82.00. There are currently 3 sell ratings, 5 hold ratings and 27 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Nike has received a consensus rating of Buy. The company’s average rating score is 2.69, and is based on 27 buy ratings, 5 hold ratings, and 3 sell ratings. According to analysts’ consensus price target of $117.04, Nike has a forecasted upside of 3.2% from its current price of $113.37. Nike has been the subject of 23 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Nike (NYSE:NKE)

Nike has a dividend yield of 0.85%, which is in the bottom 25% of all stocks that pay dividends. Nike has only been increasing its dividend for 1 years. The dividend payout ratio of Nike is 52.97%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Nike will have a dividend payout ratio of 29.97% next year. This indicates that Nike will be able to sustain or increase its dividend.

Insiders buying/selling: Nike (NYSE:NKE)

In the past three months, Nike insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $26,663,725.00 in company stock. Only 3.80% of the stock of Nike is held by insiders. 64.20% of the stock of Nike is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Nike (NYSE:NKE

Earnings for Nike are expected to grow by 40.95% in the coming year, from $2.32 to $3.27 per share. The P/E ratio of Nike is 71.75, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 18.51. The P/E ratio of Nike is 71.75, which means that it is trading at a more expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 53.25. Nike has a PEG Ratio of 3.15. PEG Ratios above 1 indicate that a company could be overvalued. Nike has a P/B Ratio of 21.93. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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