Blue-Chip Apparel Giant Prepares for Earnings

Analysts anticipate EPS of 55 cents

Deputy Editor
Mar 20, 2023 at 12:37 PM
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The shares of Nike Inc (NYSE:NKE) are marginally higher this afternoon, just ahead of the blue-chip company's fiscal first-quarter earnings report, which is due out after tomorrow's close. Analysts are anticipating the apparel maker to report earnings of 55 cents per share and revenue of $11.47 billion.

Looking back a bit further at post-earnings reactions, Nike stock's last eight next-day returns have been mixed, with four going negative and four going positive. The equity averaged a post-earnings swing of 8.3% over the last two years, regardless of  direction, and this time around the options market is pricing in a slightly bigger move of 12.8%. 

Last seen trading at $121.638, NKE sports a fractional 3.7% year-to-date lead. On the charts, the $116 level kept a pullback in check earlier this month, and the security has managed three-straight closes above the $120 area for the first time in a month.

NKE March 202023

Options traders have been more bearish than usual in recent weeks. The stock's 50-day put/call volume ratio stands higher than 80% of annual readings at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Echoing this, NKE's Schaeffer's put/call open interest ration (SOIR) of 1.10 stands higher than 83% of readings from the past 12 months, suggesting short-term options traders favor bearish bets.

Analysts, meanwhile, are overwhelmingly bullish. Of the 27 in coverage, 19 say "buy" or better. Plus, the 12-month consensus price target of $130.03 is a 7.1% premium to current levels. 

 

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