Nike Inc. ($NKE) Stock | Shares Sell Off On Mixed Earnings Report


Nike Inc. (NYSE: NKE)



Nike Earnings & Technicals

NKE Chart

After the market closed on Tuesday, Nike Inc. (NKE) released earnings with mixed results that sent shares tumbling in the post market session. The athletic retailer announced earnings per share of 55 cents on $8 billion in revenues while analysts were looking for 48 cents per share on $8.2 billion in revenues. NKE slightly missed on revenues and is being punished for it through its share price. Shares closed Tuesday at $64.90 and opened Wednesday down at $61.33, a 5.5% decrease. Shares ended the day at $62.44 down a point from the highs but still a nice comeback from the opening print of $61.33. Looking at the daily chart you’ll see that shares have been on a nice upward trend for quite a while now. Recently shares have bounced a few times off the 200-day moving average with a few days of trading below but have always made a come back to recover that important level. I would like to see shares maintain the 200-day that is currently sitting at $59.84 on this pullback before making the next move up. Currently analysts have an average price target of $71.87.


CEO Comments

“Getting back to the results, NIKE delivered another strong quarter in Q3 with balanced growth across our expansive powerful portfolio. By the numbers, here the highlights. NIKE, Inc. revenues grew 8% to $8 billion. On a currency neutral basis, NIKE, Inc. revenues grew 14%.Gross margin was 45.9% flat to prior year and earnings per share increased 22% to $0.55. The foundation for NIKE’s success and one of our greatest competitive advantages, is our complete offense. It’s what gives us the power to use our size and scale to accelerate growth and the flexibility to stay nimble and fast.” (NASDAQ)


NKE Profile

NIKE, Inc. engages in the design, development, marketing and sale of footwear, apparel, and equipment, accessories and services. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. It focuses on NIKE Brand and Brand Jordan product offerings in seven key categories: running, basketball, football, men’s training, women’s training, NIKE sportswear, and action sports. It also markets product designed for kids, as well as for other athletic and recreational uses such as baseball, cricket, golf, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. The company sells a line of performance equipment under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, golf clubs, and other equipment designed for sports activities. It also sells small amounts of various plastic products to other manufacturers through its wholly-owned subsidiary, NIKE IHM, Inc. Its reportable operating segments for the NIKE Brand are: North America, Western Europe, Central & Eastern Europe, Greater China, Japan, and Emerging Markets. The company wholly-owned subsidiaries include Converse Inc., which designs, markets and distributes casual footwear, apparel and accessories and Hurley International LLC, which designs, markets and distributes action sports and youth lifestyle footwear, apparel and accessories. The company was founded by William Jay Bowerman and Philip H. Knight in 1964 and is headquartered in Beaverton, OR. (MarketWatch)