tiprankstipranks
Nike Plummets after Q1 Results
Market News

Nike Plummets after Q1 Results

Story Highlights

Today, NKE released its Q1-2023 earnings results. The numbers came in higher than expected, as both diluted EPS and revenue beat estimates (although not by a huge amount). Nonetheless, along with many other companies in the same boat, NKE saw declining profitability year-over-year.

Nike (NYSE:NKE) recently reported earnings for its first quarter of Fiscal Year 2023. Diluted earnings per share came in at $0.93, which beat analysts’ consensus estimate of $0.92 per NKE share. In the past nine quarters, the company has beaten estimates nine times.

Sales increased 4% year-over-year (10% on an fx-neutral basis), with revenue hitting $12.7 billion compared to $12.25 billion, higher than the $12.28 billion that analysts were looking for.

In addition, the company demonstrated operating deleverage since earnings fell despite higher revenue. Indeed, diluted EPS fell 20% as revenue increased 4%. Likewise, NKE’s EBIT margin fell from 17.7% to 14.5%. As a result, the company’s operating income decreased from $2.16 billion in the comparable period to $1.84 billion now.

Investor Sentiment for NKE Stock is Currently Neutral

The sentiment among TipRanks investors is currently Neutral. Out of the 568,072 portfolios tracked by TipRanks, 2.1% hold NKE stock. In addition, the average portfolio weighting allocated towards NKE among those who do have a position is 5.16%. This suggests that investors of the company are fairly confident about its future.

In addition, in the last 30 days, 0.2% of those holding the stock increased their positions. As a result, the stock’s sentiment is above the sector average, as demonstrated in the following image:

Is NKE Stock a Buy, Sell, or Hold?

NKE has a Moderate Buy consensus rating based on 12 Buys, seven Holds, and zero Sells assigned in the past three months. The average NKE stock price target of $123.28 implies 29.3% upside potential.

Takeaway – NKE Beats Earnings and Revenue Estimates

Nike experienced a solid quarter as earnings per share and revenue beat estimates. In addition, analysts are somewhat confident that the company will bounce back, given NKE’s Moderate Buy consensus rating. Despite this, the stock is currently selling off in the after-hours trading session.

Disclosure

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles