NKE Earnings: Nike's Financial Results Beat on Top and Bottom Lines
Nike (NKE) has reported Fiscal fourth-quarter financial results that beat Wall Street forecasts across the board.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
The Beaverton, Oregon-based manufacturer of sneakers and athletic apparel announced earnings per share (EPS) of $0.14, which was slightly above the $0.13 consensus estimate of analysts. Revenue for the quarter totaled $11.10 billion, which beat the $10.72 billion expected on Wall Street. Sales were down 12% from a year earlier.
In its earnings release, Nike said that its Fiscal fourth-quarter results represent the 'largest financial impact' from its turnaround strategy and that the headwinds it faces are likely to moderate in coming quarters. 'I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control,' said Nike Chief Financial Officer (CFO) Matt Friend.
Nike's net income. Source: Main Street Data
Turnaround Strategy
Nike is in the midst of a multi-year turnaround strategy prompted by declining sales in the key market of China and a lack of consumer enthusiasm for the company's sneakers and brand. Last quarter, the sneaker giant warned that its Fiscal fourth quarter would be the low point of its turnaround under CEO Elliott Hill, who took the helm of the company last October.
However, in recent months, Nike's situation has worsened, particularly with U.S. President Donald Trump's import tariffs on products made in Asian countries such as Vietnam and China, where the bulk of Nike's manufacturing occurs. In recent months, Nike has focused on repairing relations with wholesale partners that were severed under previous CEO John Donahoe, and investing in sports innovations and advertisements.
NKE stock has declined 35% in the last 12 months.
Is NKE Stock a Buy?
Nike's stock has a consensus Moderate Buy rating among 25 Wall Street analysts. That rating is based on 13 Buy and 12 Hold recommendations issued in the last three months. The average NKE price target of $71.48 implies 14.26% upside from current levels. These ratings are likely to change after the company's financial results.
Disclaimer & Disclosure Report an Issue
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
42 minutes ago
- National Post
Arizona governor approves up to $500M to upgrade Diamondbacks home
PHOENIX (AP) — Arizona Gov. Katie Hobbs signed legislation Friday that funds up to $500 million in renovations to Chase Field, home of the Arizona Diamondbacks. Article content The bill, which won bipartisan support in both of the state's GOP-controlled chambers, will use sales tax revenue from the stadium and nearby buildings for infrastructure upgrades over the next 30 years, including improvements to air conditioning systems and the stadium's retractable roof. Article content Article content Article content The team said it will also contribute $250 million for the renovations at the stadium, which is located in downtown Phoenix and is surrounded by small businesses and restaurants that see a boost of activity during the baseball season. Article content The legislation is one of a handful of bipartisan deals that Hobbs, a Democrat, prioritized negotiating during the session. She says the funding is a responsible use of taxpayer dollars, will provide good-paying jobs and ensure the Diamondbacks do not leave Phoenix. Article content Attendance at games has increased since the team's 2023 run to the World Series, where the Diamondbacks lost to the Texas Rangers. This season they are averaging 31,420 fans per game — the highest in two decades. Article content 'I'm not going to let Arizona lose the Diamondbacks,' Hobbs said Friday on the social platform X. Article content Derrick Hall, president and CEO of the Diamondbacks, praised the governor and said the team will now turn its attention to extending its lease with Maricopa County. Article content Article content The bill cleared the Legislature June 23 after months of debate that included the question of whether the Diamondbacks could potentially leave unless a public funding deal was reached. Article content Other MLB teams have threatened to leave host cities if they did not get public financing. Article content The Oakland A's, for example, complained for years about the Oakland Coliseum and an inability to gain government assistance for a new ballpark. Now the team is bound for Las Vegas, where a groundbreaking ceremony was held this month for a $1.75 billion ballpark that is expected to be completed in time for the 2028 season. Nevada and Clark County approved up to $380 million in public funds for the project. Article content And last year voters in Jackson County, Missouri, rejected an attempt to extend a sales tax that would have helped fund a ballpark for the Kansas City Royals and stadium renovations for the Kansas City Chiefs. Lawmakers in Kansas are trying to lure the teams with government subsidies, and Missouri is trying to keep them with its own financial incentives.
CTV News
an hour ago
- CTV News
‘The U.S. doesn't have all the cards': Giffin on Trump's claims of leverage over Canada
Watch Former U.S. Ambassador to Canada Gordon Giffin on the 'disruptive' termination of trade talks between Canada and the U.S.
Globe and Mail
an hour ago
- Globe and Mail
Robert W. Baird Keeps Their Hold Rating on Tesla (TSLA)
In a report released today, Ben Kallo from Robert W. Baird reiterated a Hold rating on Tesla (TSLA – Research Report), with a price target of $320.00. The company's shares opened today at $342.70. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Kallo is an analyst with an average return of -1.6% and a 43.26% success rate. Kallo covers the Consumer Cyclical sector, focusing on stocks such as Tesla, Rivian Automotive, and QuantumScape. Tesla has an analyst consensus of Hold, with a price target consensus of $287.00, which is a -16.25% downside from current levels. In a report released on June 20, Barclays also maintained a Hold rating on the stock with a $275.00 price target. TSLA market cap is currently $1121.5B and has a P/E ratio of 187.24. Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is neutral on the stock. Earlier this month, Xiaotong Zhu, the SVP, APAC of TSLA sold 15,000.00 shares for a total of $4,857,000.00.
