Nike (NYSE:Nike) is scheduled to report Q1 earnings results on September 22, 2020. Webcast details can be found here.
The company is expected to report earnings of $0.45/share on revenue of $8.976 billion. The consensus earnings per share (EPS) of $0.45/share is based on a poll of 19 analysts and represents a decline of -49.5% over the same quarter last year when the company reported earnings of $0.86/share.
The revenue forecast of $8.976 billion based on a poll of 19 analysts implies a year-over-year (YoY) decline of -15.8%. Last year the company reported $10.66 billion in revenue for the quarter.
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.
What are your expectations from Nike for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the 4th Quarter, 2020 the stock price reacted by falling by -6.4%.
Fundamentals And Technical Analysis
Nike is currently trading at $118.87/share, up 3.55% for the day. The company is trading at its 52-week high. The company’s stock price is up 38.41% since the beginning of the year and up 5.76% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 70.65 suggests the company is trading in technically overbought territory. The RSI is considered overbought when above 70 and oversold when below 30. Empowered with the right tool, you can easily find oversold and undervalued stocks.
The current share price implies a price-to-earnings (P/E) multiple of 72.9x, which is too high compare to its peers. Nike’s current share price also implies a price-to-book (P/B) multiple of 23x, versus its peers mean of 2.8x. The following table summarizes some other key value ratios that show how Nike could be very overvalued:
Company Profile: Nike
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories, including running, NIKE basketball, the Jordan brand, football, training, and sportswear.
It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, wrestling, and other outdoor activities; and apparel with licensed college and professional team and league logos, as well as sells sports apparel. In addition, the company sells a line of performance equipment and accessories comprising bags, socks, sports balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities; and various plastic products to other manufacturers.
Further, it provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All-Star, One Star, Star Chevron, and Jack Purcell trademarks; and action sports and youth lifestyle apparel and accessories under the Hurley trademark.
Additionally, the company licenses agreements that permit unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives.
The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon
